PinkSheet Stocks

Gold Mining Penny Stock CVRG Converge Global Setting up for a MoonShot

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Before I even begin to talk about CVRG let me say this.  CVRG is a PINKSHEET penny stock that is extremely speculative and has all the normal disadvantages that normally come with pink sheet stocks.  I consider penny stocks in some ways less risky than options because they do not have time decay, premium and expiration, but that does not mean they still cannot cause major heart ache.

I made a decision a while back not to talk too much about pink sheet penny stocks here at BestOnlineTrades because they are an entirely different animal and just do not seem appropriate to mix in with all the other ‘big board’ topics I cover here.  But occasionally I make an exception and I am doing that now.

So having said that, and since I have free editorial reign here at BestOnlineTrades I want to tell you about CVRG, Converge Global.  It is a pinksheet gold mining penny stock.  The ONLY reasons I think CVRG could become a nice play for the next 2 to 3 months are because of the technical setup that exist within CVRG and also the backdrop of a parabolic exploding gold and silver price.

We have already seen a number of gold mining penny stocks blast higher in recent weeks and I expect this trend to continue.  SGCP (Sierra Gold Corp) up 900% from its recent lows, BRYN (Bryn Resources) up 4042% from its recent lows, KATX (Kat Exploration) up 1035% from its recent lows.  So clearly speculation is ripe and the gold mining pinksheet penny stocks are on fire and in heavy demand.  Part of the reason for this is simply a matter of supply and demand.  There are so few gold stocks to choose from that what you will see is ‘gold money’ funnel more easily into the micro cap gold mining plays on pure speculation and lack of other choices.

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Quick Update on Sarissa Resources

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I just wanted to do a quick update on Sarissa Resources (SRSR).  Yesterday I said that I believed that the .081 low yesterday would probably be the final low.  Well today we took out that low slightly and closed at .083 .

I still think that we are going to get a violent upside reaction rally in SRSR pretty soon.  It may be good for 30 to 50% profits.  The real rule though is that we just do not want to see SRSR trade below today’s low.  As long as it does not do that, and maybe gets an inside bar, then I think the upside reaction could start.

You might say it is like trying to catch a falling knife.  Well not exactly.  Sometimes you can catch a falling knife if you are very very careful in how you go about it. 

I have seen this trading pattern many times already, and they have looked quite similar to the pattern in SRSR right now.  The fact that SRSR is a pinksheet stock does not really change the scenario or the final outcome.

One of the most famous upside automatic rally reactions I can remember was in a company called Taser Corp.  They are still public (symbol TASR) now but the stock has been languishing for years now.  But previously when they had enormous momentum the price hit a superbly exciting peak, but then literally crashed down similar to the way SRSR has now crashed.  But then sure enough an automatic rally ensued that took the stock into a violent trading range for months.

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Bounce Play in SRSR Sarissa Resources coming ?

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There may be a ‘bounce play’ developing in SRSR Sarissa Resources, the pinksheet stock that has a tremendous run over the last few months.  It peaked out near .20 cents last week and the last few days price has been literally free falling like there is no tomorrow.

This is a highly speculative type setup (or is it?), however I believe SRSR could be setting up for what is known as an ‘automatic rally’ either by end of day today or tomorrow.  An automatic rally from current levels could lead to a 50% move higher.

An automatic rally is  just like a rubber band or a bungee cord.  You can stretch a rubber band only so far until the opposite forces take over and then it SNAPS back in the other direction almost automatically.

The heavy volume today seems indicative of us being close to washout levels.  I would not be surprised to see us hit .14 or .15 cents on a rebounding automatic rally.

The only question is, is today the bottom or tomorrow.  I am going to stick my neck out and say that .081 is the final low and that we will not have another washout day tomorrow.  I suppose we could break .081 tomorrow and then reverse back up on an intra day reversal… but that is guesswork.  I will just stick with the low being .081 and believe the automatic rally should start either by late end of day today or tomorrow.

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BEHL Biocentric Energy Holdings Continues Bullish Trend

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behl20090728 I want to do a quick refresher post here on BEHL.  BestOnlineTrades first mentioned BEHL on 7/23/2009 close to 3PM eastern time.  On that day the intraday low for BEHL was .021 and the intraday high was .0255.  It closed at .0255 .

Today BEHL closed at .0365, 43.14% higher than when it was mentioned on that day.

The price structure and performance so far still looks quite promising to me. I indicated before that I liked the clean volume advance which looked like heavy accumulation and the rapid decrease in volume on the retracements.  And as a bonus that volume and price action was coming off of a fairly long flat base of 7 to 8 months in duration.  This is important because many times it shows that a stock has entered a major new uptrend phase, or mini bull market if you will.

But the reality is that most penny stocks simply do not make it too far into their new mini bull markets.  They try and they fight to get higher but a lot of them just can’t get enough steam going and either the price advance is TOO LABORED, too slow or the retracements in between are too large and cause the advance to lose too much energy.  These things can kill the advance and cause the move to be a false one.

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IDOI IDO Home Land Security Stock Still Constructive

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IDOI, the pinksheet penny stock that you have already heard me mention several other times still has a constructive look to it.

I mentioned earlier in the week that I wanted to see it move by either yesterday or today. Well so far that has not happened and I am willing to give IDOI a little bit more benefit of the doubt.  It is getting some late day hits at the ask here on this slow Friday.

The reason why I am not giving up on IDOI yet is because instead of price continuing a slow and slopping downtrend that it was on track to do, it has instead popped its head up with decent volume and held up above the mid .002’s range quite well so far.

Of course all of this could change in a New York minute on Monday morning, but as of this writing I have to say the behavior of it is quite admirable.  I don’t know if I am going to keep a formal list of recommendations for these sub penny stocks and penny stocks that I cover.  Perhaps I will keep a more informal list just for record keeping.  So basically that means that I don’t think I will keep publishing an updated list.  However I will occasionally publish a list based on what I have talked about and what it ended up doing.

So informally lets put IDOI on the list with an entry of .0025.  I think that is reasonable since I have been talking about it for about a weeks time now.

I think what I will do is create a summary page of all recommended penny stocks and sub penny stocks.  It will not be updated in real time, although I will try to, but that way I don’t have to keep posting the list within the article postings.

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BEHL Biocentric Energy Holdings Penny Stock Worth Watching

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BEHL, a penny stock that trades on the pinksheets is worth watching to me because it has shown 3 signs of strength already since a few months ago and now is in a consolidation pattern that will either be a falling wedge or just a sideways channel.

I like that advance that BEHL has had since a few months ago.  The quality of the volume on the advances and the rapid decline in volume on the consolidations looks good to me.  A lot of times on penny stocks I tend to see heavy volume on the advances but then also excessive volume on the consolidations.  In my experience that has more often than not been a troubling sign.  But BEHL has not shown that and right now price is holding within the range of .02 to .035. 

So .035 is the top of the range.  I do not know how much longer this consolidation will last, but when either of those two blue dotted down trending lines on the chart above are violated, it will be the first sign that change is at hand.  I think there is an outside chance BEHL could do a swing low to .015 before the uptrend resumes, but I could be wrong.

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IDOI IDO Security Pinksheet Stock at a Tipping Point

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IDOI, the pinksheet sub penny stock that I have mentioned a couple other times could be at an interesting ‘tipping point’ going into today. I mentioned in an earlier post that I preferred it to make some kind of move this week otherwise I would not talk about it again.  Well we are almost as … Read more