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Top Penny Stocks July 2019 Update

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Written by Timothy Sykes
Updated 1/4/2023 15 min read

Let’s get some administrative details out of the way before I  hop into the top penny stocks July 2019 . …

Please go back and read Top Penny Stocks to Watch in June. It explains my thoughts on “hot stock picks” and why I adapt to the market rather than memorize patterns.

In a nutshell:

  • It’s more important for you to understand the process of making a watchlist than to get so-called hot picks from me. Or anyone else.
  • Your goal should be to become a self-sufficient trader. Don’t follow my alerts — except to understand my thought process.
  • Learn to recognize patterns but also be able to recognize when they aren’t working.
  • I provide a daily watch list to Trading Challenge students. Stocks come and go. I teach trading, not investing. Join the challenge to get my daily watchlist.
  • Do your own research. It’s much better for you to understand why I’ve put a stock on the list than to blindly think it’s a potential 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, TimAlerts, Pennystocking Silver, 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.]
Tim Sykes
© 2018 Millionaire Media, LLC

The Broader Market : Top Penny Stocks July 2019

We just witnessed one of the biggest middle-finger salutes to the old saying “Sell in May and go away” in history.

The markets were not only up in June…

  • The NASDAQ composite recorded its best June in nearly two decades.
  • The Dow Jones Industrial Average recorded its best June in 81 years.
  • The S&P 500 posted the best June since 1955. That’s 64 years.


Just as the beginning of May was the start of a month-long slide, June signaled a clear reversal.

For example, except for June 3, the market shot up every day the first week of the month. The second week we saw healthy consolidation, and the third week, another pop. The month ended with a red week. But overall the markets held gains for the month — and the year.

Here’s a 1-year chart of the SPDR S&P 500 Trust ETF (NYSE: SPY):

SPY (S&P 500): 1-year chart
SPY (S&P 500): 1-year chart

U.S. Markets Testing All-Time Highs — Again

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Last month I mentioned the S&P looked like a possible double top. Now the markets are once again testing all-time highs.

I also said we’re only one China trade-deal away from a possible breakout. Things haven’t changed too much in that respect. We did get news out of the G20 summit in Japan that the U.S. and China will restart trade negotiations. That’s positive. Now we wait and see.

Penny Stock Trading in the Current Market

As always, I adapt my trading to what’s actually happening rather than a prediction. I also adjust based on my personal schedule. I don’t force trades. June was no different.

I only took 15 trades during the month because I didn’t see many of my favorite setups. And … my personal schedule didn’t fit very well. I spent a good part of the month in time zones that make trading the U.S. markets tough — like Japan and Hawaii.

That might seem counter intuitive since the market was up. Welcome to trading. There’s a lot about it that’s counterintuitive.

Now, before I give you my top penny stocks to watch in July 2019, let’s recap the picks from June. This will give you an idea of how fast things can change with penny stocks.

Recap: June 2019 Top Penny Stocks to Watch

  • Soliton, Inc. (NASDAQ: SOLY) went supernova on May 28 and 29. Newbie shorts got squeezed as it ran from $5.82 all the way to $29. In June it was choppy. It found support around $14, but on July 1 it cracked below support.
  • Obalon Therapeutics, Inc. (NASDAQ: OBLN) spiked in May based on the release of expanded clinical data and rumors of a buyout bid by Johnson & Johnson (NYSE: JNJ). The stock pretty much tanked for the entire month. From its June 3 high of $1.58, OBLN dropped roughly 54% and is trading in the 70-cent range.
  • Eltek Ltd. (NASDAQ: ELTK) was a possible dip buy for me in June based on its drop of nearly 50% off of May highs. ELTK spent most of June downtrending. It had one notable morning spike on June 10 but still closed down for the day. The stock seems to be holding historical support in the high $3s to low $4s.
  • Legacy Reserves, Inc. (NASDAQ: LGCY) was the darling of the market on June 3. It spiked roughly 540% on news the company reached forbearance agreements with its lenders. On June 18, Legacy filed for Chapter 11 bankruptcy with outstanding debts of roughly $1.68 billion.
  • Castor Maritime Inc. (NASDAQ: CTRM) spiked on earnings news. CTRM has a history of failed one-day spikes. This time was no different. After its initial pre-market spike on June 4, it tanked. By the end of trading on June 5, CTRM was back to pre-spike levels and is trading in the low $4 range.

Trading Lessons From the June 2019 Recap

Remember, most of these companies are terrible. Most will go bankrupt. That’s why I trade the ticker rather than invest in the company. LGCY bagholders from June 3 got stuffed. Bagholders on any of these stocks got stuffed, but the LGCY bagholders got the worst of it.

Take the time to study the charts of these stocks. See how they performed. Study history to learn patterns.


Timothy Sykes’ Top Penny Stocks July 2019

Again, the stocks on the list made it because of the lessons they provide. They might not be in play by the time you read this. That’s the beauty of penny stocks.

How I Pick Stocks for My Watchlist

Every day I look for the top percent gainers. Whether it’s at night or pre-market depends on my schedule/time zone. Then I sort them in order based on volume traded. After that, I look at long-term charts, company profiles, etc. I always look for the news catalyst. Sometimes there isn’t a good catalyst, which makes me more cautious.

With a monthly watchlist, it’s not much different since I don’t stay in trades long-term. I did choose three gradually uptrending stocks with multi-month runups for this list. Even though they move slowly, they could break out any day with the right news and volume. We’ll start with those.

Digital Turbine Inc. (NASDAQ: APPS)

Digital Turbine has a nice looking long-term chart. It’s been uptrending since November 2018. The company provides software to the mobile industry. Clients include original equipment manufacturers (OEM), advertisers, and app developers. The chart shows the stock has the ability to hold gains and is trading near multi-year highs.

Check out the 1-year chart:

APPS 1-year chart
APPS 1-year chart

APPS was an earnings winner at the start of June and has continued its uptrend. Trading volume is low compared to the float but has increased since February. Remember to look at ALL the indicators explained in my Trader Checklist Part Deux guide. Volume can affect the ease of your entry and exit.

Conformis, Inc (NASDAQ: CFMS

Conformis is another slow mover due to low volume, but the long-term chart shows a nice uptrend. The company designs, manufactures, and sells individually tailored joint replacement implants.

Here’s the 1-year chart:

CFMS 1-year chart
CFMS 1-year chart

As you can see on the chart, CFMS is a former multi-day runner. Most recently, it had a three-day run starting after hours on June 25 following a $33 million round of financing.

Corindus Vascular Robotics Inc. (AMEX: CVRS)

Corindus Vascular Robotics designs and manufactures robotic-assisted systems for interventional vascular procedures. They boast the only FDA-cleared robotic system for those procedures. Plus, years of clinical evidence.

Corindus joined the Russell 3000 Index on July 1, following the annual Russel reconstitution.

Here’s the chart:

CVRS 1-year chart
CVRS 1-year chart

Corindus spiked on May 8 even after they missed earnings projections by a penny per share. Why the spike on missed earnings?

  • Corindus Vascular Robotics announced increased year-on-year revenue.
  • The company announced purchase orders for 11 of their super-cool robotic systems (called CorPath GRX).
  • And Corindus announced they have cash to burn.

A biotech with revenue growth, orders for products, and cash in the coffers. Notice how the resistance near $2.50 in March became the support in June. That’s another concept you’ll come to understand better as a Trading Challenge student.

Now for a few recent spikers…

Avid Bioservices Inc. (NASDAQ: CDMO)

Avid Bioservices provides development and manufacturing services to other biotech and pharmaceutical companies.

CDMO is a recent earnings winner. An analyst from Janney Montgomery Scott upgraded it to a buy with a $10 price target. On that news, in pre-market trading on June 28, shares were up as much as 20% from the previous day’s close.

Here’s the 10-day chart with 5-minute candlesticks:

CDMO 10-day chart, 5-minute candlesticks, extra-hours trading included
CDMO 10-day chart, 5-minute candlesticks, extra-hours trading included

CDMO has some positives and some negatives. It’s an earnings-winner play reaching multi-day, multi-week, and multi-month highs. It’s a former runner. But, it’s choppy, and trading volume in relation to its float is low.

The right news catalyst and a boost in volume could see this one run more. This is a potential dip buy only for me.

FuelCell Energy Inc. (NASDAQ: FCEL)

FuelCell Energy designs, manufactures, and installs fuel-cell power plants. They also have solutions for energy storage and recovery.

The 1-year chart below shows only one multi-day run back in February. The long-term trend is all down. Notice the huge gap up after FuelCell announced a 12–1 reverse stock split, which took effect on May 9.

FCEL 1-year chart, 1-day candlestick
FCEL 1-year chart, 1-day candlestick

After the reverse stock split, the chart is ugly. So why add it to this watchlist? A few reasons:

  • Volume started to pick up on June 27 when FuelCell announced a new carbon capture project.
  • On July 1, it was one of the top percent gainers in the market.
  • Volume on July 1 was heavy but nothing compared to July 2.
  • It’s the biggest percent gainer in the entire market as I write (July 2).

Check out the 2-day chart:

FCEL 2-day chart, 1-minute candlestick
FCEL 2-day chart, 1-minute candlestick

After the run on July 1, I added this to the daily watchlist I share with Trading Challenge students. Look at the MASSIVE volume on July 2. As I write during power hour, the volume is 133.08 million shares on a float of 20.75 million. In other words, the float has rotated more than six times in one day. Huge. (Power hour is the last hour of trading before the market close.)

Also, the stock is hitting a new high of the day. We’ll see what this one can do. As I said, the long-term chart is bad. It’s very choppy. I won’t chase it, so it’s a potential dip-buy only for me. Ideally on a big morning panic. A few Trading Challenge students reported doing well trading FCEL on July 2. [Update: I tried to buy into the morning panic on July 3 but couldn’t get my order executed. It was moving too fast. Scary stock Whew!]

Ocular Therapeutix Inc (NASDAQ: OCUL)

Ocular Therapeutix is a biopharmaceutical company focused on therapies for eye diseases.

As you can see on the chart below, OCUL dropped roughly 11% back in May — the gap down on the chart. One of their therapies, called OTX-TP, failed a phase 3 trial. But there’s been a steady rebound since then. The stock recently hit multi-month highs and is now green year-to-date.

Check out the 6-month chart:

OCUL 6-month chart, 1-day candlesticks
OCUL 6-month chart, 1-day candlesticks

Now look at the 2-month chart with 15-minute candlesticks:

OCUL 2-month chart, 15-minute candlestick
OCUL 2-month chart, 15-minute candlestick

Ocular Therapeutix had several news catalysts during this run:

  • May 30 — Ocular Therapeutix announced they would present at three biotech investor conferences in June.
  • June 10 — there was a large volume of insider buying before the launch of a new product.
  • June 21 — the company announced FDA approval of a new drug application.
  • July 1 — the company announced the commercial launch of their DEXTENZAⓇ product for use in the U.S.

How to Use This Top Penny Stocks to Watch List

Like I said last month — this list is NOT advice to buy these stocks.

Instead, study the charts, look them up in real-time using your favorite stock screener. I use StocksToTrade every day. It’s how I found these stocks and all the stocks I trade.

Do some research to find what’s driving price action. I’ve given an overview of the news catalysts for these stocks. Read the press releases and articles. It’s all part of your preparation to trade. The better prepared you are, the better your chance take advantage when opportunities present themselves.

Watch How To Make Millions to learn the best patterns. Apply for Trading Challenge if you’re ready to study and work harder than you’ve ever worked in your life. I’m happy to have you as a student — but no lazy losers. Get on it.

Are you a trader? What’s your criteria for a stock to make your daily watchlist? Comment below. New to trading? Comment below with “I’ll look for the biggest percent gainers every day!” 

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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. Read More

* 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”