Earlier this week I spoke to you about Jason Bond and his renewed interest in the small-caps…
With all the action we’ve seen on that front in recent days (such as CTIC & TNXP), one thing is becoming evident – traders are clearly having a strong appetite for highly speculative penny stock plays.
And we, short-term traders, can’t complain about that!
Jeff Williams, our own penny stock master, thinks it’s about time to get involved in one of the small cap’s hottest sectors historically – the biotechs!
His idea is simple – with the capital flowing greedily into anything that moves, we can expect strong overreactions to any FDA-related news.
Here are 2 stocks Jeff Williams suggests we should keep a close eye on.
Catalyst Biosciences – CBIO
The stock has traded in the penny territory for a while now but seems to have finally found support over the past 2 weeks or so.
Here’s what Jeff had to say in his alert earlier today:
“Technically CBIO is making a higher high and higher low now since the start of February. I love how this broke up over the 50-day MA line at $.70 today.”
To get him into a trade, however, Jeff wants to see first confirmation – he’d rather join the move, not try and predict one!
Therefore, his focus is on volume and support in the short-term – he’d like to see the stock consolidate at current levels or above, with increasing volume.
Here’s his current plan:
“I would be watching for a possible $.85 to $1.00 target all while holding over $.60 area.”
DBV Technologies – DBVT
DBVT is another truly beaten down name.
The stock has also been on a long losing streak but pulled off some strong gains yesterday.
Jeff believes this could potentially be a trend reversal and start of a short-term upmove.
Shares are trading lower than yesterday off the open, but Jeff is still keeping it on watch for key technical levels – should the stock regain some of the lost ground, it can easily have another lef higher.
Here’s what he plans to do:
“I will watch for possible continuation and a KEY breaking point of $1.86 followed by a gap toward $2.40 area.”
If you want to get more penny stock trade ideas, be sure to pay Jeff Williams a visit in The Trading Floor – his live trading room.
