Hey Everyone,
A quick one month summer holiday has passed, and the stock market has had a bull market of a weird variety. The S&P is on a five month gains streak and the consecrate day streak recently was pretty wild. Of course nobody really cares, it’s summer volumes.
The NASDAQ 100 is up 45% so far in 2023, in an A.I. boom among other things.
Some interesting things have occured while we weren’t paying attention like Volkswagen taking 5% stake in XPeng. XPEV 0.00%↑ Or Palantir getting another Government contract. Dan Ives, managing director of equity research at Wedbush Securities, described Palantir as “the [Lionel] Messi of AI”. Oh boy!
Last friday I sold a bunch of stocks including SOFI 0.00%↑ , this stock market is very overheated. The perfect time to offland some froth, and with penny stocks if there’s anything you have to know to be successful, it’s when to sell.
I’m a swing trader at heart, not a day trader or a long-holder. If I see a profit of 35 to 50% I’ll consider selling if the macro market is too bullish.
Some penny stock names to Research
I’m on the lookout for healthcare tech and biotech penny stocks that have a future. If you can locate these companies and hold, you are in for multi-1000% gains. It’s hard to imagine.
What good penny stocks amount to are startup companies, and they are notoriously risky and difficult to make bets on. A lot of the early success is timing and a great product-market fit in particular macro conditions. The most interesting thing to me about investing in micro cap stocks, is trying to understand the startup with the limited information available. This is not a challenge for the timid.
If you had followed my advice one such name you would have invested in would be IONQ 0.00%↑ - I notice it’s up 474% this year. A lot of such examples to be honest. You still have to pick and choose incredibly carefully and know which vertical is worth a more serious bet.
But let’s just get our feet wet again a little, do some initial research and keep some tabs on some new names:
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