The world of penny stocks moves fast. To be successful, you need to make a list of stocks to watch, and potentially trade, every day.
Many new traders feel overwhelmed at first. How do you choose which stocks to put on the list? It all starts with looking for big percent gainers. Keep reading for more about how to create your own penny stock watchlist.
First…
News Moving the Penny Stocks on This List
As you know from last week, the cannabis sector is hot again thanks to the MORE Act of 2019. The House of Representatives voted to pass the bill last Friday. It’s the first step toward national legalization of cannabis. Only one of this week’s highlighted stocks is in this sector. But keep watching the sector in the coming days and weeks.
Holiday trading season is here. In what’s already the craziest year for traders in decades, a lot of stocks are running on no news. Especially in after-hours trading. The three listed stocks highlighted this week fall into that category.
Finally, U.S. stock futures dropped heading into the week. That’s at least partially due to the continued rise in Covid-19 cases. Remember: roughly three out of four stocks follow the overall market.
Read More
Read these related posts to learn more…
- Top Penny Stocks To Watch (Newly updated monthly watchlist.)
- First Green Day OTC: Common Patterns & Trading Tips (See stock #2: TPTW on this week’s list below.)
- Penny Stocks on Robinhood: Reasons I Don’t Trade There (See stock #3: OBLN and stock #5: MRIN below.)
Top Penny Stocks List Weekly Update: December 7, 2020
Let’s start with OTCs and then move on to listed. Check it out…
Top OTCMarkets Penny Stocks To Watch
Below is my OTC penny stocks list for the week starting December 7. I’ve picked two to dig a little deeper so you get an idea of the thought process that goes into my list.
The first stock on this week’s list is in the cannabis sector…
Top Penny Stocks List Weekly Update #1: Marijuana Company of America Inc. (OTCPK: MCOA)
Marijuana Company of America is a marijuana marketing and distribution company. MCOA started last week as a sub penny stock. It spiked on news of a joint investment program with Cannabis Global, Inc. (OTCPK: CBGL)
The joint shareholder update said the companies “recently entered into an agreement where each became the largest shareholder of the other. […]The companies engaged in this transaction to promote the growing common interests and collaborations between these two pioneering cannabis and CBD operations.
“[…] The two companies have agreed to collaborate in several areas, including expanding product offerings in Europe and Latin America and developing Cannabis Global’s Project Varin designed to discover and market new methods to infuse hemp extracts and cannabis into food, beverages, and other consumer products.”
Read the full press release here.
Here’s the MCOA six-month chart:
MCOA was up as much as 361% after the joint shareholder update. It pulled back but still closed up 168% on Friday. (CBGL closed up 94% on Friday.) I’m watching for a potential morning panic or big spike. Ideally on the back of news and big volume.
Top Penny Stocks List Weekly Update #2: TPT Global Tech Inc (OTCQB: TPTW)
TPTW was a late day runner and solid example of the first green day OTC pattern on Friday. There are rumors of a media event this week, possibly Tuesday.
I traded TPTW on Friday and planned to hold it over the weekend. But when it met my goals (and more) I decided to play it safe.
Here’s the TPTW one-year chart:
TPTW closed up 68% on Friday. Again, I’m looking for a morning panic or any big spike with news and volume. The OTC market is hot and TPTW is popular with promoters so I’ll keep an eye on the STT Social Media search tool. Also, the StocksToTrade Breaking News guys will alert any big chat pumps.
Top Listed Penny Stocks to Watch
Here’s my listed penny stocks to watch for the week starting December 7. The three I’ve highlighted are all speculative. All three stocks spiked without any real news. Again it’s holiday trading season. Take advantage of the mania, but don’t chase.
Top Penny Stocks List Weekly Update #3: Obalon Therapeutics, Inc. (NASDAQ: OBLN)
Obalon Therapeutics develops medical devices for weight loss.
OBLN spiked 107% after-hours Friday on huge volume but no news. Even the StocksToTrade Breaking News guys mentioned it looks like something is going on. This morning it made a popular ‘Robinhood stocks to buy’ list. You can’t make this stuff up. It hit $2.07 per share in premarket trading before dropping nearly 50%.
Here’s the OBLN one-year chart:
As you can see, OBLN spiked back in April. That spike also seems to have been based on promotion rather than real news. Watch to see what the promoters and Robinhooders do with this low float runner. For me it’s a potential dip buy into any big panic only — I won’t chase.
Top Penny Stocks List Weekly Update #4: China HGS Real Estate Inc. (NASDAQ: HGSH)
China HGS Real Estate Inc is a real estate developer. Most of the company’s revenue comes from sales of condos and commercial property in China.
HGSH has a history of failed one-day spikes. Again, this is a speculative spiker with no real news. But it’s popular with the Twitter promoters.
Here’s the HSGH one-year chart:
HSGH closed at $1.73 on December 3 before spiking in after-hours trading. The stock hit a 52-week high of $5.40 on December 4. It has since given back most of those gains, trading in the mid- $2s in pre-market trading on December 7.
Top Penny Stocks List Weekly Update #5: Marin Software Incorporated (NASDAQ: MRIN)
Marin Software operates a digital advertising software as a service (SaaS) platform.
MRIN hit a 52-week high of $5.70 on October 21. That day the stock traded its highest volume since December 2018.
On Friday, the stock ran into the close before a huge after-hours spike. Like OBLN and HGSH, MRIN didn’t have any news. But the spike did help MRIN find its way to the same popular Robinhood list as OBLN, so keep watching.
Here’s the MRIN one-year chart:
MRIN is another low-float runner getting pumped on Twitter. I’ll watch for a potential dip buy but won’t chase, as there’s no real up-to-date news.
How to Create Your Own Penny Stock List
Want to know how to create your own watchlist? To start, look for big percent gainers. For two decades, big percent gains have been my #1 criteria. After that, I look at trading volume and catalyst or reason behind the price action. Read “Stock Watchlist Guide: Tips & Examples to Develop Your Own” for details about the entire process.
How to Use the Top Penny Stocks List Weekly Update
When you read the weekly penny stock list (and the monthly watchlist), don’t think of them as hot picks. Frankly, sometimes they’ll be duds. That’s why it’s called a watchlist. Welcome to penny stocks.
👉🏼SUBSCRIBE to my FREE weekly stock watchlist here.
Instead, try to figure out why I’ve put the stocks on my list. Study so you can become a self-sufficient trader. Only fools chase hot picks.
What do you think about the weekly penny stocks list? Comment below, I love to hear from all my readers!
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