3 Hot Penny Stocks That Retail Traders Are Watching in October
October 2021 has been quite a wild ride for penny stocks so far. And considering that we’re only at the halfway point in the month, it doesn’t look like this volatility is going anywhere anytime soon. But, typically we see that retail traders thrive off of large fluctuations with penny stocks. This is due to most leaning toward the swing trading method. If you’re unfamiliar, this is buying and selling penny stocks in a short time frame based on chart signals and speculative events.
With penny stocks, speculation is the key driver of most movements. This includes news, press releases, and company-specific/industry-specific events. Because of this, the best traders are always the ones that are the most informed. In addition to understanding specific news about the company or industry you’re interested in, it’s a good idea to consider what’s going on in the world.
Right now, this includes inflation, the pandemic, and the general uncertainty of the near future. All of this may help to make your strategy more bulletproof moving forward. Now, we also have to consider the effects that retail traders have on penny stocks and the general stock market.
While this may have not been a major factor a few years ago, now, retail traders have a large impact on the market. This means that investors need to keep a close eye on what stocks are being discussed and what the latest trends are. So, keeping all of this in mind, here are three penny stocks that retail traders are watching right now.
3 Penny Stocks That Retail Traders Are Watching Right Now
One of the biggest gainers of the day so far is Cemtrex Inc. By midday, shares of CETX stock had jumped by over 20% to $1.26 per share. While no company-specific news came out today for Cemtrex, it did make an important announcement only a few days ago. On Tuesday, October 12th, the company released a corporate update on its business operations.
“Throughout the second half of CY 2021, we have continued to see demand improvement as the economy has reopened and businesses are returning to pre-pandemic operations. In response, we are investing in sales and marketing staff across the board to grow our business and increased R&D to drive innovation. We expect these investments to drive topline growth over the next two to three years.”
The CEO of Cemtrex, Saagar Govil
If you’re not familiar with Cemtrex, it is a provider of industry-leading technology. This includes products in the IoT (internet of things), AI, VR/AR, and consumer product industries. Because it is such a broad player in the tech industry, Cemtrex has a large market reach to take advantage of. As stated earlier, the company was affected by the pandemic, but it does look like it is working to overcome this. Considering this corporate update and the variety of businesses that Cemtrex represents, it could be worth keeping a close eye on.
Yamana Gold Inc. is a mining penny stock that has been climbing in several recent trading sessions. In the past five days, shares of AUY have jumped by over 5% which is quite substantial for a gold mining stock. If you’re not familiar, the company produces precious metals in Brazil, Chile, Canada, and Argentina. Yamana holds an interest in development stage properties, exploration properties, and land positions. At these locations, the company produces both gold and silver.
Yamana recently announced promising exploration results at its operating mines. For all of its actions, it selected new zones and targets. In addition, the company recently released preliminary exploration drill findings from its Wasamac project. All of these results were rather positive, but are they the reason that AUY stock is going up in the market? Well, AUY stock is often impacted by the price of gold and silver themselves. This means that investors should keep a close eye on the precious metals industry at large.
Moving forward, the company will provide its third-quarter results after the market closes on October 28th, 2021. Yamana will also provide an operational update on the same date, and hold a conference call the following day. It will be interesting to see how these new updates affect AUY’s stock price. Based on this recent info, will AUY stock make your October penny stocks watchlist?
Ebang International Holdings Inc. (NASDAQ: EBON)
In the last few trading days, shares of EBON stock have begun to show a bullish turnaround. While its performance over the past year is nothing to write home about, the company does have a large role in the budding crypto industry. And with interest in crypto continuing to rise, EBON could be at top of mind for investors.
For some context, Ebang International is a company that creates app-specific integrated circuit chips and sells bitcoin mining machines. The China-based corporation researches, designs, and develops these products, and also provides routine maintenance services. Ebang also sells fiber optical telecommunication products such as PDH fiber optical multiplexers.
On October 1st, the company reported its unaudited financial results for the first six months of the fiscal year 2021. The company experienced a gross profit of $5.64 million during this period. This was a massive increase over the gross loss of $0.96 million that it posted just one year prior. Overall, Ebang’s net loss fell year over year from $6.96 million to $4.26 million. The company’s total computing power sold increased by 220% year over year as well. All of these numbers are very encouraging and reflect both EBON’s business and the crypto/blockchain industry at large.
“To achieve long-term stable growth, the company plans to vigorously develop financial technology (FinTech) business, while steadily carry out research and development as well as sales business of mining machines of Bitcoin and other cryptocurrencies such as Litecoin and Dogecoin.”
Mr. Dong Hu, the Chairman and CEO of Ebang
With a company like EBON, we see that the correlation is extremely high to crypto market. This means that EBON stock can be quite volatile in addition to following price movements of common cryptocurrencies. Noting all of this info, will EBON be on your list of penny stocks to watch?
Why Penny Stocks Are Worth It in 2021
Penny stocks present an opportunity that many blue chips just can’t match. That opportunity being the large price movements and the under $5 price tag. Because of this, the opportunity to make money with penny stocks is palpable.
However, making money with penny stocks is not easy, and involves a great deal of research and dedication to your trading strategy. Considering all of this, do you think that penny stocks are worth it in 2021 or not?
Each day, we analyze emotions and sentiments from different sources and crunch them into one simple number: The Fear & Greed Index for Bitcoin and other large cryptocurrencies.
This post by Lorimer Wilson, Managing Editor of munKNEE.com is an edited ([ ]) and abridged (…) version of an article by Alternative.me for the sake of clarity and length to ensure a fast and easy read.
<img src=”https://alternative.me/crypto/fear-and-greed-index.png” alt=”Latest Crypto Fear & Greed Index” />
Why Measure Fear and Greed?
The crypto market behaviour is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear Of Missing Out). Also, people often sell their coins in irrational reaction of seeing red numbers. With our Fear and Greed Index, we try to save you from your own emotional overreactions. There are two simple assumptions:
Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
When Investors are getting too greedy, that means the market is due for a correction.
Therefore, we analyze the current sentiment of the Bitcoin market and crunch the numbers into a simple meter from 0 to 100. Zero means “Extreme Fear”, while 100 means “Extreme Greed”. See below for further information on our data sources.
We are gathering data from the five following sources. Each data point is valued the same as the day before in order to visualize a meaningful progress in sentiment change of the crypto market…
1. Volatility (25 %)
We’re measuring the current volatility and max. drawdowns of bitcoin and compare it with the corresponding average values of the last 30 days and 90 days. We argue that an unusual rise in volatility is a sign of a fearful market.
2. Market Momentum/Volume (25%)
Also, we’re measuring the current volume and market momentum (again in comparison with the last 30/90 day average values) and put those two values together. Generally, when we see high buying volumes in a positive market on a daily basis, we conclude that the market acts overly greedy / too bullish.
3. Social Media (15%)
While our reddit sentiment analysis is still not in the live index (we’re still experimenting some market-related key words in the text processing algorithm), our twitter analysis is running. There, we gather and count posts on various hashtags for each coin (publicly, we show only those for Bitcoin) and check how fast and how many interactions they receive in certain time frames). A unusual high interaction rate results in a grown public interest in the coin and in our eyes, corresponds to a greedy market behaviour.
4. Dominance (10%)
The dominance of a coin resembles the market cap share of the whole crypto market. Especially for Bitcoin, we think that a rise in Bitcoin dominance is caused by a fear of (and thus a reduction of) too speculative alt-coin investments, since Bitcoin is becoming more and more the safe haven of crypto. On the other side, when Bitcoin dominance shrinks, people are getting more greedy by investing in more risky alt-coins, dreaming of their chance in the next big bull run. By analyzing the dominance for a coin other than Bitcoin, you could argue the other way round, since more interest in an alt-coin may conclude a bullish/greedy behaviour for that specific coin.
5. Trends (10%)
We pull Google Trends data for various Bitcoin related search queries and crunch those numbers, especially the change of search volumes as well as recommended other currently popular searches. For example, if you check Google Trends for “Bitcoin”, you can’t get much information from the search volume. Currently, you can see that there is a +1,550% rise of the query “bitcoin price manipulation“ in the box of related search queries (as of 05/29/2018). This is clearly a sign of fear in the market, and we use that for our index.
Surveys (15%) currently paused
Together with strawpoll.com (disclaimer: we own this site, too), quite a large public polling platform, we’re conducting weekly crypto polls and ask people how they see the market. Usually, we’re seeing 2,000 – 3,000 votes on each poll, so we do get a picture of the sentiment of a group of crypto investors. We don’t give those results too much attention, but it was quite useful in the beginning of our studies. You can see some recent results here.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
A futures-based exchange-traded funds based on Bitcoin called the ProShares Bitcoin Strategy ETF (BITO) started yesterday and I believe it will be a major factor in making the process to invest in Bitcoins considerably easier, safer, and more convenient. Here are 5 reasons why:
While our year-end price target for Bitcoin is $100,000, we believe that Bitcoin prices will soar much, much higher in the long run – like 5X higher. That’s right, we think Bitcoin is going to $500,000 and the rationale is simple.
Trading in bitcoin has become a very profitable way to generate income, and whether you’re just starting out, or have been at it for a while, there are some tips that can enhance your bitcoin trading strategy.
While there are risks, cryptocurrencies can reap huge rewards for those who make the right investment decisions. In this blog post, we discuss how to invest in cryptocurrency and what you need to know if you want to get involved!
Gold and Crypto are both expected to embark on their next bull run and, a disadvantage to owning one asset is often an advantage of owning the other. Therefore, we believe both deserve a place in your portfolio for at least insurance purposes.
It would be wise for bitcoin traders to use any kind of hedge that they can find and over the past few months, one such hedge has been, ironically, gold.
A Few Last Words:
Click the “Like” buttonat the top of the page if you found this article a worthwhile read as this will help us build a bigger audience.
Comment belowif you want to share your opinion or perspective with other readers and possibly exchange views with them.
Register to receive our free Market Intelligence Report newsletter (samplehere) in the top right hand corner of this page.
Join us onFacebookto be automatically advised of the latest articles posted and to comment on any of them.
munKNEE.com has joined eResearch.com to provide you with individual company research articles and specific stock recommendations in addition to munKNEE’s more general informative articles on the economy, the markets, and gold, silver and cannabis investing.
Check out eResearch. If you like what you see then…
Gold prices are once again on the rise, as investors around the globe prepare for the elevated risk of inflation that is anything but transitory.
December gold futures hit a high of more than $1810 per ounce on Friday, marking an increase of about 2.5% during the week— the fastest weekly gain since the beginning of spring. The bullion’s popularity has accelerated over the past month, as investors look to hedge against growing inflation risks despite assurance from central banks and policymakers that price pressures will abate soon.
Moreover, gold prices are also getting a boost from a declining dollar index, as the US dollar continues to weaken against other major currencies, most notably the euro, yen, and the yuan.
Indeed, the latest rally suggests that an increased number of investors prefer “hard” assets such as precious metals to counter a rising inflationary environment. As a result, some industry leaders are expecting the rally to continue, and likely coincide with price accelerations across other commodities, such as natural gas and aluminum.
Former chiefs of Canadian-based gold mining company GoldCorp Inc., Rob McEwen and David Garofalo, recently told Bloomberg that the inflationary phenomenon currently witnessed around the globe will not be as transient as central banks’ official figures suggest. As investors begin to take into account a more permanent state of price pressures, the price of gold could hit $3,000 per ounce, they said.
“I’m talking about months. The reaction tends to be immediate and violent when it does happen. That’s why I’m quite confident that gold will achieve $3,000 an ounce in months not years,” explained Garofalo, arguing that gold makes a better hedge against inflation than cryptocurrencies, due to the precious metal’s long-standing history as a universal asset.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
Hard to know where this is all going to lead. But one thing is clear– we have added a very interesting new chapter in the history of money.
In my course on the financial system, I’ve had to update the material to include cryptocurrencies and central bank digital currencies (CBDC). Here’s some pictures of cryptocurrencies.
Figure 1: Price of bitcoin (blue), ethereum (brown), litecoin (green), in USD, in logs, 2017M01=0. NBER defined recession dates shaded gray. Source: FRED, NBER.
These three particular cryptocurrencies have experienced proportionately enormous appreciations. Taking bitcoin as an example, it’s clear cryptocurrency returns have been enormous compared to even the S&P 500.
Figure 2: Price of bitcoin in USD (blue), London 3pm price of gold in USD/oz. (brown), S&P 500 index (green), in logs, 2017M01=0. NBER defined recession dates shaded gray. Source: FRED, NBER.
However, the month-on-month volatility of bitcoin is enormous, even dwarfing that of gold, as shown in Figure 3.
Figure 3: Month-on-month growth rate of the price of bitcoin in USD (blue), of London 3pm price of gold in USD/oz. (brown), of S&P 500 index (green), all calculated as log-differences. NBER defined recession dates shaded gray. Source: FRED, NBER.
The standard deviation of month-on-month (not annualized) changes was 2.8% and 3.9% for gold and S&P 500 respectively. For bitcoin, it’s 21.6% monthly. That means that bitcoin does not fulfill the third function of money, namely a store of value, very well.
Given this volatility, one has to wonder why one would want to hold bitcoin. In his post, Jim asks:
Why does the stuff have value in the first place? The answer is that it would be very helpful to many buyers and sellers of real goods and services if they were able to pay for transactions in this way. We can think of any form of money as an asset that provides liquidity services, which refers to the tangible benefit to its holder coming from the ability of the asset to facilitate certain transactions. The value of money, that is, the value of real stuff you’d be willing to give up to hold money, can be thought of as the present value of the stream of these future liquidity services.
Bitcoin has two potential advantages over credit cards for providing such liquidity services. First, the supporting network only needs to verify that the private code is valid, which is less costly than verifying that you are indeed the rightful owner of a credit card and are ultimately going to deliver good funds. …
Second, Bitcoins are relatively more anonymous than credit cards. In this respect, they enjoy some of the same advantages as cash….
One can formalize this argument by referring to the equation for pricing assets:
D stands for dividends when P refers to a stock price. In our context, D is the liquidity services provided by bitcoin (which can be small for those who don’t need to evade restrictions), P the price of bitcoin. If one can rule out bubbles, then a bitcoin price is equal to the present discounted value of liquidity services. However, there’s no reason to impose this assumption.
Then the price of bitcoin is moved primarily by new information that changes the information set used for forecasting the future price — in other words, the speculative motive is central.
The expected future price is in this interpretation driven by new information about the liquidity services provided by bitcoin. New regulatory measures — either tightening or loosening — should be associated with bitcoin price movements. Figure 4 highlights the role of such regulatory events, as well as the discount rate.
Figure 4: Price of bitcoin in USD (blue, left log scale), TIPS 5 year yield, in % (brown, right scale). NBER defined recession dates shaded gray. Source: FRED, NBER.
Chinese measures to rein in the use of bitcoin negatively impacted prices. On the other hand increasing acceptance of the use of bitcoin — as in the establishment of a bitcoin futures ETF — enhanced the liquidity services provided by bitcoin.
What does the future herald for the price of bitcoin? It depends on the balance between increasing regulations that limit the desirability of bitcoin as a pseudonymous means of transactions and the increasing usefulness of bitcoin as an asset class. The establishment of central bank digital currencies (CBDCs) will also certainly alter the relative desirability of cryptocurrencies.
For more, see Charles Engel’s paper on the subject. Eswar Prasad devotes considerable discussion of cryptocurrencies in his new, comprehensive assessment of the digital revolution in finance, The Future of Money.