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Low volume today. Mm's letting the amateur traders grow their crop before they cut it down.
It's such a casino. Thanks for posting.
Yes, totally agree. Superior earnings reports will be the only route higher.
We hang on because we are not cashing out till this story plays out. Once the DLA adds another cats gory or two $.30 will be behind us. Don't look at it.
Do 5% twice a month, that is 120% per year. Wish I had a machine that did that for me. Creeps
Let it grow, cut it down, let it grow, cut it down. Need the uptick rule reinstated.
Here Vincem, penny stock 101
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Technical Analysis Falls Short With Penny Stocks 0 comments
Mar 28, 2013 2:02 PM
Technical Analysis (TA) is a great tool to predict upcoming share price activity based on past trading action. While a way to gain an advantage over other traders, TA does have it's limitations.
With any TA pattern, to be reliable it should have a significant amount of trading volume behind it. The more investors and trades that create any technical pattern, the more that pattern can be trusted. For example, a support level where 20% of all the outstanding shares trade hands is much more likely to remain intact than if only 3% of shares were bought and sold.
When it comes to penny stocks, this trading volume requirement can become problematic. Many low-priced shares of smaller companies do not have enough trading activity to generate any degree of reliability. Even when a perfect TA pattern emerges on a penny stock's trading chart, it should not be trusted.
I should clarify my position, of course, since I have often cited TA for about 10% of the penny stock research my team and I conduct, and even dedicated an entire section to TA in my books, most recently "Penny Stocks for Dummies," published by John Wiley & Sons. I'll discuss some patterns which can sometimes be helpful with penny stocks, but first let's examine why they usually aren't.
While a perfect cup-and-handle pattern on a large cap stock's chart implies a near term upside move in price, that exact pattern on the chart of a penny stock with very low trading volume may mislead you and cause investment surprises... and losses.
To better understand how the thin trading volume makes the TA patterns less reliable, consider public opinion polls. Ask five people if they agree with a specific position on some hot button topic. Does the response from five people represent overall sentiment of the entire nation? Not really. However, as you ask 50 people you will get a better view of the general opinion on the topic. If you were to ask 5,000 people, you will find that the result is much more representative of public opinion, and may even be much different than that of the first five people. In other words, the larger the sample size, the more trustworthy the information. This fact is just as true in stocks as opinion polls.
TA can be a useful tool for stocks with high trading volume, such as those investments which have millions of shares traded per day, or millions of dollars worth of the company exchanging hands every week. Unfortunately, you may be hard pressed to find any penny stocks which meet this trading activity criteria.
Even when thinly traded penny stocks seem to be displaying certain TA patterns, you should proceed with caution. Unless significant buying and selling took place to form the indicator, it should not be trusted to play out as expected, even when the pattern appears like a textbook example of any particular TA pattern. For example, what looks like a topping out pattern in a penny stock may not be one at all. Investors who mistakenly act on the TA indicator are putting themselves at risk, since the shares may not act as the set-up implies.
While relying on TA to predict future prices in penny stocks is generally not helpful, and in fact can be quite misleading and costly, there will still be many investors who continue to place their trust in this analysis style. And yes, I am one of them.
If you choose to ignore my heart-felt warnings above, and intend to apply TA to penny stocks anyway, try to stick to the few indicators which I have found to be more reliable than others. These include:
On Balance Volume (OBV) is a running total of shares traded each day, expressed as a line. Those from a positive closing day are added to the total OBV, while those from a negative closing day are subtracted. The line generated typically mirrors that of the stock's trading activity, but when the shares do not it can imply that the stock price will shortly move back in lock-step with the OBV.
Support and Resistance Levels show up often with penny stocks since it takes less buying or selling in small companies to generate them than is needed in large caps.
Volume Spikes typically insinuate that the current price move will be lasting... that is, until the trading volume slows, at which point the move might soon reverse.
Moving Averages (MA) of shorter duration are more effective indicators with penny stocks. My favorite (and generally the most reliable) are the 9 and 18 day MAs. When the 9 day line crosses above the 18 day line, it implies a buying opportunity.
The Money Flow can be very telling in penny stocks. Any small company that has yet to increase in price, despite a strong flow of money into the stock, will typically see a short term uptrend begin within weeks, and probably days.
I will suggest again that you proceed with caution when applying TA to penny stocks. The rules of the indicators do not apply, even when those patterns appear exactly as you would hope. If you are going to lean on technicals anyway, then at least stick to some of the more appropriate ones for thinly traded penny stocks, as I have discussed above.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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You are still treating penny stocks like they are S&P stocks.
60 minutes or financing on "Shark Tank"
Just saw a brinks truck picking up a boatload of cash from Publix supermarket . Think I'll leave it be.
In answer to your question; it would be worth billions.
I will grant you the deterioration. Not arguing that. But the story behind the stock is not deteriorating . It's just getting cranked up. It all depends on your time horizon . Most people on this board have chosen to ignore the volatility in favor of the big picture. You can call us foolish for now but at some point you may be calling us rich.
Uh, ok, lol
What is it that causes a stock price to react to moving averages? Volume. There isn't enough volume on a small penny stock for those considerations to come into play. If I called four people and three said they were going to vote for Hillary Clinton in the next election I can't accurately declare she is going to win with 75% of the vote! The survey has to be much larger to be accurate. AAPL has multiple millions of investors and money managers watching the charts. That's when you consider technical analysis. APDN barely has 500k in volume by noon. That's why charting doesn't work on low volume penny stocks. BTW, Hillary would not be my choice for president.
Once they get over 50 employees do government regulations regarding healthcare etc. kick in? Might want to keep it at 49 for a while longer.
Penny stocks move on news and manipulation and pump and dump schemes, not technical analysis.
So are you suggesting we all should liquidate our positions when the company story is still intact?
You have no idea what is going on behind the scenes with this company. They will make it to the next level the old school way; they will earn it with big contracts. It'll happen, mark my word.
Four days in a row it tested twelve and held. If it tests it too many more times it will break through it to the downside.
That's right, all we get are bare bones. But hey, it's payday. At least all 40 employees get their six digit salary.
Analogies only go so far. APDN doesn't really care much about its shareholders. They are more interested in their own pockets being lined. We can only hope our society embraces this technology and we grow in spite of those who could care less. Right now the shareholders do not represent enough power (like a buffet type) to give a flying fig about us. They see us as parasites whom they do not wish to share their wealth with even though we are part owners of the company. Sorry if that sounds a bit jaded however for now we will be the last to share in the bounty.
It's as boring as waiting for a crop to grow in a field. But in due time the harvest is reaped. Hang in there farmers!!
You know I've been out since $1.20
Made good money off of this trade. You convinced me a long time ago.
Everyone is gun shy because of mm's, dilution and the CEO printing 50 million shares for himself. Starving for some fresh indication of monetary progress.
Stalled out here. Need a new catalyst to push north.
That second dilution took everybody by surprise. I think 15 is the new 20.
Give me 50 million shares and you can consider it done
Coming soon:–
FSC 3110, Bearings (Aviation)
– FSC 4730, Fittings, Hoses, and Tube (L&M)
– FSC 5325, Fasteners (Troop Support)
– FSC 5935, Electrical Connectors (L&M)
– FSC 5961, Semi-conductor Devices (L&M)
Wouldn't that be nice! We could turn the printing press off and start collecting real money! It makes sense. When will somebody besides the peasants see it!
Besides, the computers are talking to each other, not humans.
Because texting it would make it a damning piece off illegal activity.
I too feel like it was a slap in the face to shareholders. These executives want to be compensated like they work for Apple yet they can't even operate in the black. Everybody gets paid like they are a great success and the shareholders get dumped on on a regular basis. Once you are making money; fine , pay yourself. But don't take your company public if all you are going to do is suck the blood out of your shareholders.
Can't get serious institutional backing till the pps is over $5.00
I stand corrected. You are right in your interpretation however when they are exercised the result will be dilution and a harm to shareholders.
Usually stock options are given as a bonus. Many times as a signing bonus. Many times they cannot sell until after a waiting period. These were bonuses. They cost them nothing. They are now sitting on 50 million and 3 million shares. It is dilution. A company buy back instead of a give away would be in our best interest. That ain't gonna happen. I'm feeling very disrespected.
As I stated before; Everybody getting paid but the stock holders. We are viewed as peasants not deserving of any of their deep intellectual efforts. At some point they may appreciate us but it is not at this point in the company's history
That is the correct interpretation
Just too many mysterious fluctuations in this stock. Up 500%, down 75%, up 100%, down 70%, up 40%, down 30%. And that's just over a years time. Something is not right.
Once again everybody but the shareholders getting paid.