Today on the radio - Pennystockchaser??

I heard an add for PENNYSTOCKCHASER.com .. Am I hearing this correctly? They're actually advertising on the radio now? I figured they'd just stick with the internet, but it looks like they're moving on to bigger, greater lemmings.

You know when all the eyes start going toward otc's the run is coming to an end soon. Penny stocks have been very active recently for several different reasons

1) people are making up for losses last year while the market is going sideways. the sheeple need something to do, right?

2) with the recession, it would make sense that emerging companies see revenue increases as larger businesses look to lower costs and expenses, so I'm thinking we'll see some huge penny runners from .05s to over $20 but they'll be far and inbetween, and most likely listed on NASDAQ or AMEX. You may see some .pks and .obs run like this, but never without having to filter through all the obvious manipulation.

3) momentum! momentum has shifted here, that much is obvious. reason number 3 might be interchangeable with number 1 or a footnot. hah

My point of this post though:: Radio advertising = more eyes = momentum dies as trading beccomes an obvious repeating pattern until it starts doing the opposite of what everybody expects.

Hot Penny Stocks with Fibonacci? -- MCLN

These are potential buy targets.

I used an hourly chart at the bottom of the consolidation to start my fibonacci, but in order to see how effective fibonacci is, one would need to observe the 1min or 5min chart.

I find most OTCs will retrace to 61.8, but the better ones will only retrace 50%. For now, I'll look between .02 and .03. Once it leaves that range, a trader would wish he bought anywhere under .03, so generally its safer to pick a range of fibonacci.

My sell targets:

From here I rounded out the .02 and .03 buy target with about .025 or so. Start at the most recent low (the low it just put in) and end it with its most recent high. this will give you targets to sell. I'll adjust the levels once its put in its low and see how it reacts with it.

here's a chart of MCLN.
fibonacci isn't necessarily for investing. I feel fibonacci is mostly used by retail, and who do you think are pushing these penny stocks? Retail! So, fibonacci is a must in my opinion, when trading otc and other penny stocks.

And there you go, MCLN, hot and ready

Fibonacci

Fibonacci is a technique, not a truth. It's fine if you believe in its universal nature, and it's fine if you don't. Fibonacci has value in consistency of trading structure.. Always keep that in mind.

If anybody has any questions about how I apply fibonacci to establish price targets, both sell and buys, feel free to ask.

I will also analyze a chart with fibonacci if you ask. I'm doing this for free because I enjoy blogging and talking about stocks and trading methods..

Where to sell CBAI and where to buy it back?

Buy targets established
Sell Targets established

Remember, you only use the fibonacci levels that either have obvious support, or strong resistance. Most resistances get tested before they fail so don't worry about having to be accurate. The point isn't to "know" where the stock is going. The point is to have pre-defined entries and exists *ONCE THE TREND HAS BEEN ESTABLISHED*

Never buy and sit on something while its sideways. Fibonacci won't hold a price if it's going to 0