It’s that time — here are my top penny stocks to watch November 2019…
In the October edition of Top Penny Stocks to Watch, I mentioned that not enough people are prepared when a good trade comes their way. The reason 90% of traders lose is lack of preparation. Sadly, this includes many of my students who fail to recognize the value of studying the past.
So many hot plays in October reinforce the point. We’ve seen short squeezes, supernovas, and supernovas created by short squeezes. The low-priced junk niche is hot right now. But there are also higher-priced plays.
One thing I’ve noticed a lot recently is low-priced stocks spiking into the close. But I’ve also noticed a lot of morning gap downs on the same stocks. So if you’re buying into the late afternoon spikes, be sure to sell into strength. Don’t hold and hope. Adapt.
Here’s the deal…
You need to find a balance that’s right for you. The strategies I teach don’t require you to overtrade. I trade like a castrated choir boy. And I encourage you to trade conservatively like me.
But you can’t take advantage of the best opportunities unless you’re willing to put in the time to study the past. You have to learn to recognize — and react to — the best setups. And you have to be willing to adapt to what the market is doing rather than what you want it to do.
(You can learn all the basics of my strategies in “The Complete Penny Stock Course.” Get it. Read it. Memorize it.)
How to Create a Watchlist
If you’re new to the blog, memorize this section. Take notes and do it daily until it’s second nature. If you’ve been reading for a while … you should have this memorized.
I use StocksToTrade scanning software. Every. Single. Day.
- Focus first on big percent gainers. I like to look at the end of the day and also pre-market. Many recent pre-market spikers have been good plays due to over-aggressive shorts getting squeezed. And a lot of low-priced stocks are spiking into the close recently.
- Look for big volume. Remember to look at the float, as big volume on a low-float stock is different from big volume on a high-float stock. Also think about the dollar volume. The dollar volume on a true penny stock can still be very low even if the share volume is high.
- Look for a news catalyst. That’s not to say I never trade a stock without a clear catalyst. But it does influence how I trade.
- Check the long-term chart for spikeability and multi-day runs.
- Use the Twitter scanner on StocksToTrade to see what other traders are saying. That does NOT mean you should follow what some Twitter pumper says. Please, please, please … use the Twitter feed to understand the mindset of the degenerates. Or those who believe the stock is the next big thing — NOT as a buy signal.
How To Cull Your Watchlist
Most days I closely watch a list of five to 15 stocks. But if you’ve seen me trade, you know my overall list is bigger. That’s because recent spikers can spike again. I keep track of recent runners.
At the same time, I constantly drop stocks from my list. It’s simple: if a stock doesn’t do anything for a while, just take it off your list. If it comes back later, StocksToTrade will catch it. (Some people ask why StocksToTrade isn’t picking up some stocks on my list. If that’s you, change your filter settings. StocksToTrade was built for these stocks!)
How to Use My Top Penny Stock Watchlist
I create these monthly watchlists to give you an idea of my process. Most picks don’t become great setups to trade. Welcome to penny stocks.
?? SUBSCRIBE to my FREE weekly stock watchlist here: Weekly Watchlist
If I was right on every pick, we could all retire in six months. That’s why it’s called a watchlist. It’s also why I’m fully transparent about all my trades and about how stocks on last month’s list performed.
But I also underestimate stocks. Recently, I underestimated many short squeezes. Again, I trade conservatively. So I’m happy to take my 10%–20% and build my account over time. I trade with a small account. (See why here.)
- NEVER follow my alerts to enter or exit a trade. Never follow ANY alerts to enter or exit a trade. Become a self-sufficient trader by joining the Trading Challenge and studying your butt off.
- Learn to react rather than try to predict. Guessing games don’t work with stocks. You don’t have to be first if you learn to use all seven indicators covered in my Trader Checklist guide.
- Adapt, adapt, adapt. Markets change, and they don’t care about you. Learn to adapt.
- NEVER use my watchlists as a recommendation to trade. Use them to learn my thought process. I don’t trade most of the stocks on my watchlist. Some days I don’t trade.
[Disclosure: Some of the stocks mentioned below have been traded or otherwise discussed by Tim Sykes as part of his daily watchlist provided to Trading Challenge, , , and Millionaire Masters Program subscribers. Tim Sykes may or may not hold open positions on these stocks at any given time. This list is not a recommendation to buy or sell any stock. Do your due diligence. Full earnings claim disclosure here.]
The Broader Market
The Fed Strikes Again
Federal Reserve officials met again on Wednesday, October 30, and opted for another rate cut of 25 basis points. That’s the third rate cut this year — and likely the last based on comments by Fed Chairman Powell.
S&P 500 Hits New Highs
The S&P 500 hit a new high on October 29. Then, in response to the Fed’s rate cut, it closed at a new high for the second time in two days on October 30. The Dow and Nasdaq also responded favorably and are both close to their July highs.
As I said in last month’s post, I won’t try to guess what happens next. With uncertainty around impeachment, the U.S-China trade war, and geopolitical events like Brexit, it’s a fool’s game to try to predict.
The strategies I teach don’t require you to know everything about the markets. I will caution you not to ignore them, however. Roughly three out of four stocks follow the overall market. So it’s a good idea to know how the markets are moving.
If you’re new to penny stocks or need a refresher, get my FREE Penny Stock guide here.
Recap: October 2019 Top Penny Stocks to Watch
- Ignite International Brands (OTCQX: BILZF) remains on my watchlist as I’m interested to see how Dan Bilzerian grows the company. On October 25, Ignite announced the close of a first series of unsecured senior convertible debentures placement raising CA$10 million. They also announced a second series expected to close at the end of November. The stock traded sideways — in roughly the $1.60–$1.80 range for the past month.
- Guardion Health Sciences, Inc. (NASDAQ: GHSI) spent most of October in the high $0.40s/low $0.50s. Spikes on October 10 and 25 came from positive news catalysts. The stock dropped after the company announced an equity offering on October 28. It’s traded in the high $0.20s to close out October.
- United Energy Corp. (OTCPK: UNRG) ran from $0.20 per share to $0.527 per share between October 1 and October 3. The stock trended down most of the month. A takeover rumor on October 21 caused a nice little spike. But it was another classic ‘buy the rumor, sell the news’ situation. The shareholder update on October 22 confirmed the takeover but did nothing to boost the stock. But on October 31, UNRG spiked 81% and is trading around $0.10 per share. A reminder to keep watching recent runners. UNRG made it back on my daily watchlist for November 1.
- Clancy Systems International Inc. (OTCPK: CLSI) hit a 52-week high of $0.117 on October 8. The rest of October was choppy. The stock dropped to $0.06 and then bounced back to $0.10 in a matter of days. It’s since continued to trend down, trading in the high $0.02s.
- Rainmaker Worldwide Inc (OTCPK: RAKR) began October at a 52-week high of $0.279 after news of an award and a grant to develop a renewable water solution. A huge selloff on October 1 dropped the stock to $0.17 per share before it bounced. Heading into November, RAKR is trading around $0.12 to $0.13 per share on low volume.
Top Penny Stocks to Watch November 2019
IVERIC bio Inc. (NASDAQ: ISEE)
IVERIC bio is a gene therapy company developing treatments for retinal diseases. They have several treatments in the pipeline at various stages of development from research to phase 2 trials.
On October 28, ISEE spiked 57% premarket on news of a successful phase 2 clinical trial of Zimura®. The treatment met the goal of reducing the rate of atrophy growth in patients with age-related macular degeneration.
As we’ve seen a lot recently, over-aggressive shorts piled in even though the stock was up on good news. ISEE not only held its gains, it also hit a new 52-week high on October 30.
As I said in my October 30 watchlist — before another 40% spike — this is a heavily shorted stock. Based on recent short squeezes, I’m watching this as a potential buy — either on a morning spike with news/volume or potentially a dip buy on a big morning panic.
Alpine 4 Technologies Ltd (OTCQB: ALPP)
Alpine 4 Technologies is involved in a number of industries including software, automotive tech, energy services, and electronics manufacturing. Their business model is based on the acquisition of existing companies.
The stock started to move back on October 9 after reporting Q3 revenue growth of 43% over Q3 2018. It’s continued to stair-step up ever since.
Check out the 1-month ALPP chart:
I traded ALPP during a live webinar on October 29. The stock was spiking into the close like so many other low-priced stocks recently. But the price action was very strange with a lot of big buyers and sellers. I decided to play it safe, so I didn’t hold overnight, getting out for a small win.
I really love OTCs so it’s good to see a chart like ALPP, which is one of the best looking charts right now. Again, it’s a great example of a stock that likes to spike into the close. This is a pattern I’m watching for now and also sharing with students. ALPP is a potential buy for me but it needs volume and ideally news, too.
Xunlei Limited (NASDAQ: XNET)
Xunlei is a Chinese cloud-based acceleration company. Cloud-based acceleration is tech that lets consumers get digital content faster. And it gives reliable/fast access to content producers so they can manage their digital assets Think streaming videos, fast-loading websites, and other digital media. XNET is also in the bitcoin and blockchain space.
My recent post about the XNET short squeeze — and the lessons to be learned — is a must read. Newbie short sellers who bet against anything on the move based on fundamentals/warrants have no idea. The shorting space is so crowded right now, they’re all fighting each other.
And here’s where it gets even crazier. XNET announced a $100 million fund to invest in blockchain technology during after-hours trading on October 30. What happened? The stock spiked again — running from $5.15 to $6.25 in under an hour.
I teach my students to be very careful about overnight holds. When I hold overnight, it’s for a very specific reason. I’m meticulous. With XNET, you have all these newbie shorts who got squeezed when the stock ran from the $2s to the $6s on October 27. And now you have the patient shorts getting crushed because positive news spiked the stock again.
Again, only tell newbie shorts to read my warning posts if you really care about them. Otherwise, shhh … don’t tell … as their stubbornness can create opportunities for longs.
Check out the chart…
I traded XNET on October 29, dip buying the morning panic. I nailed the bottom, but my exit wasn’t the best as the stock bounced higher later in the day. I’m still watching this stock every day for potential bounces. I want to see all-out panic dip buys or morning spikes with news and big volume.
Formerly known as Neuralstem, Inc., the company changed its name to Seneca Biopharma on October 28. They also announced an expected ticker change from CUR to SNCA on November 1. So you might need to check both tickers to find this one.
Seneca is a clinical-stage biopharma company developing a variety of treatments. They’re also expanding their pipeline through licensing agreements with other companies.
The stock spiked on October 30 after announcing a licensing agreement with Chinese company QYuns. The licensing agreement includes a novel treatment for asthma and atopic dermatitis.
Take a look at the CUR 15-day chart:
CUR is choppy and overextended. It will take more volume and, ideally, more news for me to buy. But the volume on October 30 was the highest since December 2017 — so I’ll keep watching.
TrovaGene, Inc. (NASDAQ: TROV)
TrovaGene is another therapeutic company developing treatments for various types of cancer. The company’s lead therapies are in Phase 1 and Phase 2 clinical trials.
The stock spiked on October 22 after TrovaGene announced positive phase 1b/2 trials of a treatment for colorectal cancer. The stock dropped sharply on October 25 when the company announced a financing to raise $5 million. But it’s shown the ability to spike over and over again, so I’m still watching.
Here’s the TROV 15-day chart:
Again, TROV has shown the ability to spike multiple times. And it’s a heavily shorted stock with too many over-aggressive newbie shorts. I don’t really like trading short squeezes but I’ll keep watching. Like XNET and ISEE, I’m watching TROV for a dip buy into all-out morning panic or a morning spike with news and volume.
How to Use Top Penny Stocks to Watch November 2019
I hope your goal is to become self-sufficient. One thing you can do every day — starting today — is create a watchlist. Use this list to learn my process. Do it every day, and it will become easier over time.
As always, this list is NOT a recommendation to buy. My results are not typical and I’ve developed exceptional skills over two decades of trading.
What do you think of the Top Penny Stocks to Watch November 2019 watchlist? Comment below, I love to hear from all my readers!