BEHL has been on a tear since we first mentioned it at .0255. Today it closed slightly above .07 for a move of 186%. That is a clear example of the power of penny stocks when several elements all come into play at once.
IDOI, another penny stock we first mentioned here on 7/16/09 is up 117% since our first mention. Overall I am noticed a very active penny market right now. A lot of them are moving, but of course not all of them have the most ideal setups. I think both BEHL and IDOI are coming close to some sort of short term peak soon. IDOI may be able to get to a penny intra day.. and BEHL might be able to hit .10 cents intra day before a real reversal.
These two had outstanding setups. You had substantial volume showing on both charts during the uptrend which was strong evidence of accumulation and a solid uptrend. They also both showed a sideways consolidation that did not give back too much in terms of price. And that is key! The true ultimate test of any penny stock is how it reacts and behaves after its first big move. In the case of both of these BEHL and IDOI, we saw price hold ground exceptionally well, in terms of both volume and price.
The Sad Part is that Most Penny Stocks Don’t Pass the Test!
It’s true. The vast majority of penny stocks do not pass the “what happens after the first initial rally” test. This marketplace is dangerous enough as it is, so we recommend spending a lot more time WATCHING them than jumping in them head first and hoping. That way you can filter them out and weed out the weak and stay with the strongest.
In the post before this one we brought to light SRSR which we think could get an automatic rally going soon… could it be that the first 3 penny stocks BestOnlineTrades mentions turn out to be homerun winners ? We will have to wait a few days and find out. Stay tuned.