The markets got walloped today as European sovereign debt woes and a firming U.S. dollar index continued to weigh on the equity markets. Making matters worse was the deteriorating technical backdrop as the market breached their lows for the month. The market has now put in successive lower highs and lower lows paving the way for continued downward momentum. Today’s lows become important levels to watch moving forward but we here at stockhaven tend to think more downside is in order.
One slight ray of hope in the immediate term is the action in the VIX. The “fear index” initially shot higher by 12% this morning as the markets stumbled out of the gate. However, by the close the VIX was only up 3%. Yes the markets did finish off their lows for their session, but not enough so that the VIX should’ve pulled back from highs so much. Such action suggests that the market may be due for an oversold bounce tomorrow.
We saw alot of green in both the small cap space as well as the penny market today. SQNS, CFSG, INVE, and LNG all provided nice day trades after being alerted due to pre-market activity. MAMS is one to watch as well as we noticed a form 4 filing that showed a big insider purchase earlier this month. FCSC is also busy churning in a nice channel and shares could break out to the upside at any time. KIWB, IFRS, WAMUQ, ECOB, SIGO, BCCI, SIGO, OPMG and GTGP were among the penny stocks that offered nice profit opportunities today.
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