On Friday I was left laughing out loud again when I saw news shared in the SteadyTrade Team webinar…
If you studied the catalyst of Genius Group Limited (AMEX: GNS) on Thursday, you would’ve known what to look for right away in Friday trading.
Because these penny stocks all play the same game…
They all want their stock price up and they’ll do anything or join any hot sector to get it there…
This hot theme could keep running this week — heck, I hope five more companies drop similar press releases today…
I’ll cackle like a madman.
But here’s what you have to understand about these market themes…
What to Watch For This Week
I first saw the news that Helbiz, Inc. (NASDAQ: HLBZ) was jumping on the “alleged illegal short selling” bandwagon when a member shared the headline in the SteadyTrade Team chat room.
But the Breaking News Chat team alerted it as well.
And they gave traders the full story behind why the news was important about 15 minutes before the market opened…
The stock spiked right when the news hit in premarket and went from 18 cents to a high of almost 37 cents after the market opened — that’s a 105% gain!
Then we had another stock join the penny stock theme … We’ve talked about it recently because it put out a press release as bitcoin was close to breaking out and crypto stocks were running…
So clearly, Bit Brother Limited (NASDAQ: BTB) knows how to play the penny stock game.
The company wants to capitalize on any hot market topic…
And on Friday it followed GNS’s lead and put out a press release stating they created a task force to “address suspected illegal shorting of its stock.”
It’s almost identical wording to GNS’s press release on Thursday.
The Breaking News Chat again informed traders of how the news relates to the biggest recent runner in the market. And the Breaking News Chat bros (as I like to call them), navigated traders through the halts…
So here’s what these news headlines mean for traders this week…
What Can You Learn From This Odd ‘Hot Sector?’
It seems silly that a headline that I thought was so ridiculous on day one has now spurred more companies to drop similar headlines.
But this is why I love penny stocks — the news doesn’t have to be meaningful.
Price action is all that matters.
But it’s usually a good sign when a penny stock company knows how to play the game…
- They drop perfectly timed press releases in premarket.
- They know how to take advantage of and join hot market themes.
But part of this penny stock game is dangerous…
This ridiculous ‘hot theme’ shows you just how desperate these companies are to get their stock price up.
Because the only product most of these companies have is their stock. They make money from selling shares…
That’s why the penny stock game usually ends with dilutive offerings.
So be cautious … Sometimes penny stock themes like this can last weeks or months — other times they can only last a day or two…
But until it dies, this is the theme I’ll continue to watch for this week. Re-watch my free weekly watchlist video I sent yesterday to get all my trade plans.
Have a great Money Monday, everyone! See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade