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Penny Stocks News

4 Stocks I’m Closely Watching Today

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Written by Timothy Sykes
Updated 9/26/2023 6 min read

September is historically an ugly month for the market…

And yesterday, the market was living up to its reputation with the SPDR S&P 500 ETF Trust (NASDAQ; SPY) falling to its lowest level since June…

But that didn’t stop traders from capitalizing on plays like this!

Trading is all about being prepared, so today, I’m going to share with you four stocks that have the biggest potential…

And what my plan is for this morning.

Let’s begin!

Stock #1 – Femasys Inc. (NASDAQ: FEMY)

Source: StocksToTrade

We’ve seen this time and time again…

These beaten-down stocks that are heavily shorted end up soaring 50%, 100%, or even 200% in a day!

And at the time I’m writing this, FEMY is soaring over 280% thanks to this news.

Source: StocksToTrade

News catalysts can be very powerful and these are the types of moves we want to take advantage of…

But unfortunately, we can’t be in multiple places at once, so if you missed it, the last thing you want to do is chase it higher.

As FEMY continues to get squeezed, I want you to be cautious…

We’ve seen a few of these plays fail the very next day, and in an ugly market, anything is possible…

So I want you to keep a close eye on this stock for morning / intraday panics off of a key support level but don’t get too overly aggressive in this market.

Remember, small wins do add up, so look to take the meat of the move and get out…

And if it doesn’t bounce, be sure to remember safety first and cut your losses quickly!

Stock #2- Avalo Therapeutics, Inc. (NASDAQ: AVTX)

Looking at this long-term chart you may think I’m crazy…

Source: StocksToTrade

But over the last few days, it’s been trending upwards, take a look…

Source: StocksToTrade

Despite yesterday’s sell-off, and at the time I’m writing this, AVTX was still green on the day.

I’m going to be very patient with this stock, and if it continues to fade, I’ll still keep an eye on it over the next few days to see if it traps any over-aggressive short sellers.

Remember, despite the overall market looking weak, there are a lot of short sellers looking to hammer these stocks back down…

More Breaking News

So don’t be surprised if it does squeeze, but be ready to dip buy this play off of a key support level if it has a solid panic.

Stock #3 – Cybin Inc. (NASDAQ: CYBN)

Even in this ugly-looking market, CYBN continues to soar higher…

Take a look at this chart!

Source: StocksToTrade

CYBN broke out from its multimonth resistance level around $0.53, and if you look back even further, CYBN faces another test around the $0.86 mark…

Source: StocksToTrade

I drew a line to help you see where that area is.

Back on September 18th, Steve Cohen bought a huge stake in this company…

Since then, the stock hasn’t looked back.

Despite how amazing the chart looks over the last couple of days, you need to remember that we’re still trading penny stocks…

So I wouldn’t be looking to chase this play any higher, even if it continues to spike the next couple of days…

And the thing about these multiday runners is that the longer they run, the more predictable their panic can be.

I actually explain this in one of my YouTube videos as to why multiday runners are the best to dip buy…

It’s an old one, but a goodie!

So keep an eye on CYBN and be prepared for it to panic!

Stock #4 – DMK Pharmaceuticals Corporation (DMK)

Yesterday the market was ugly and I wasn’t expecting to trade…

Until I got an alert from StocksToTrade Breaking News…

Take a look at this chart!

This stock was such a gimme…

I bought DMK at $0.925 and sold it at $1.23 for a 32.97% profit! (risked $5,365).  

Unfortunately, not every trader caught this play as it spiked…

But it could still offer an opportunity for traders who missed it in the latest run-up.

The thing with penny stocks is that what goes up must come down, so keep a close eye on it for any dip buying opportunities…

Especially with a stock with this type of volume and volatility.

Remember, history repeats itself and the same patterns we saw years ago still apply to today!

Right now in this market, we aren’t seeing as many multiday runners as we used to, but we continue to see those early morning short squeezes.

Every day I remind my traders they need to be prepared if they want to succeed…

And there is no better way to study and take advantage of what some of the top plays are during this FREE trading session.

Keep studying and if I see anything, I’ll be sure to alert you in chat.

Stay safe!

-Tim

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”