PennyFarmer.com ~ Planting the Seeds of Education and Growing My Pennies: PennyFarmer Crops to Watch 06/10

Hello fellow penny farmers,

I hope you all harvested a ton today. I had two trades in $OREX that averaged $150 in gains for my paper account. Unfortunately that decent action was squashed by my overnight trade in $GEVO which never recovered from its fade at my entry of $1.11 a share.

I’ve come to realize a couple things about how I trade and found that certain time windows don’t work for me. Overnight plays being one of them. I like the concept of an overnight play not counting as a day trade and if you nail it, you’re at a prime entry… But it seems that most of those types of trades for me turn into losses and I don’t like the extra risk of not being able to control the A/H or P/M. Maybe later on I can refine that strategy through further paper trades but for now I’m going to pass on them. Trading the opening is hit and miss for me as well. This is more about my sleep schedule and family than trading ability. I’m in Pacific Standard Time which puts the market open at 06:30am, couple that with getting my kids up and going, then driving them to school… It is difficult to enter / exit a trade on my PC. I can trade mobile but the charting and indicators are limited. I will monitor and I’m open to morning trades but I need to be really careful.

For me, the last hour (power hour) is my kill zone. I have the free time without distractions to trade on my PC. True the gains are smaller, but I’m aiming for 2% to 5% gains and will walk my stop losses up as price action moves into the close, so the small gains is not that big of an issue for me. I also like that there is a wealth of action to look at, solid intraday support and resistance levels are usually there, volume is there, news/catalyst is usually there, and the price action is fairly predictable based on the chart patterns. You have your afternoon fades and EOD squeezes. I’m also able to use my watch list as well as several sites that track the biggest percent gainers for the day.

So with that said, my trades today consisted of closing out $GEVO for a big loss. The P/M was promising but it never returned to the levels that would have gotten me out of the red. I attempted a momo play in $EYES for a push to the close but my limit order was taking too long to execute and I saw that the chart pattern and entry point was changing on me so I canceled the trade. I then made two plays in $OREX during two smaller intraday breakouts around the $0.50 - $0.51 range. Trade one netting gains of $400 and trade two a loss of $250 for an average profit of $150.

Remember Fridays can produce some big short squeezes so be cautious if going long in something. As always, keep planting the seeds of education so you can grow your pennies.

Main Crops:

TPLM, 92.19% EOD. This had a big run today with not a great catalyst. Some financial info on YF but nothing to me that looks like it justifies the action of the day. It was on my watch list for today, tomorrow would be day 3 of a run if it continues up. I think this could have one more day before falling back to old levels.

JAGX, 76.52% EOD. This had huge spike in the morning on news of Aspire Capital Fund entering a $15m commons stock repurchases It faded from 115% gains to 76% at the EOD. I’m short bias on this one though I do think it can run again early in the trading day before fading more.

BLPH, 52.79% EOD, No new news to drive the move but it had a nice morning spike and then pretty much held the level throughout the day. I’m short bias on this one just because there doesn’t seem to be a good catalyst. Definitely look at the technicals on the charts first before entering.

PRZM, 52.04% EOD, This had a nice afternoon run but I don’t see a catalyst to warrant it. I think it can run more but I wouldn’t be surprised to see if fade into the EOD.

ZDGE, 40.55% EOD. Financials are acting as a catalyst here. It had good price action today with two distinct spikes. I’d be watching the charts with this because if it breaks out past today HOD it can really rip, but if it isn’t able to it could form a head and shoulder patern.

GBR, 35.61% EOD. No new catalyst to warrant the action. I’m short bias on this one but I’d make sure the chart shows a clear break down.

EYES, 22.34% EOD. Noticed that people were pushing an older news article on this one. The price action was good but I think it may be short lived.