On the broader market, the Dow seems to be searching for a catalyst to continue the rally. Oil prices are definitely dampening investor spirits as we head into the weekend. While consumer sentiment numbers have been god, a spike in gas prices is almost certainly going to send those numbers crashing back down. The lack of a firm continuation of the rally has analysts worried that a correction may be in store for the broader markets.
Penny Stocks to Watch
Enough about the broader market. Here are three penny stocks that prove the cautionary tales on penny stocks: America West Resources, Inc. (OTC:AWSR), North Springs Resources Corp. (OTC:NSRS) and Titan Iron Ore Corp. (OTC:TFER).
The biggest story on the penny stock market has to be America West Resources, Inc. (OTC:AWSR). Yesterday around this time rumors started to fly that this was the next big promotion by the group known as ‘Awesome Penny Stocks’. Needless to say, every chatroom and message board was alight with people rushing to get in. This sent the stock from around 30 cents to as high as $1.80 in afternoon trading. An email went out saying it was their next pick and the stock trades in the $1.30 range the rest of the afternoon.
Fast forward to pre-market this morning. An email is released saying that the selection of AWSR was a mistake on the part of an editor of the newsletter. If you are guessing this sent the stock tumbling, you would be correct. 50%. Almost instantly. Right now the stock is trading in the 67 cent range, off 48%. Shorters like Timothy Sykes have joined the fray looking to scalp the stock in intraday trading.
North Springs Resources Corp. (OTC:NSRS) continues to search for a bottom. Down another 20% today, the stock continues to trade with heavy volume – over 34 million shares changing hands. News out of the company continues at a fever pitch. yesterday they announced a project report out of their Goldtar property. It should be noted the promotion of NSRS has ties with the failed AWSR push yesterday.
Titan Iron Ore Corp. (OTC:TFER) is another penny stock in the red today. Shares of TFER are currently down 15% in early afternoon trading. Volume on the company is heavy, with nearly 900k shares changing hands. TFER is down off its recently set high of $1.81. Rumors of a stock promotion behind the stock had sent shares higher in recent days. News from the company on Feb. 22 had them announcing drilling results from hole #2 on their Wyoming Iron Complex.
These three penny stocks should show beginning and experienced traders alike that penny stocks carry an inherent risk. If you are going to get into the market, you have to be aware of the risks and be nimble. Buy and hold is not the name of the game with these stocks.
For more coverage of penny stocks, check out https://www.pennystockstrategy.com
About Martin Stephenson
