Top Penny Stocks to Watch for July 2020
Dear Penny Stock Millionaire,
It’s hard to write about the top penny stocks to watch in July 2020 without a tip of the hat to June. What a month!
This market is crazy. For me, June was my best month in years. I made roughly $300,000 trading the volatility. What’s causing the volatility? Too many clueless Robinhood newbies with free time and no desire to study. And the pandemic.
The pandemic is still the number-one thing affecting the markets. Coronavirus stocks are still in play. But the booming electric vehicle (EV) sector is gaining momentum. With that in mind, I’ve picked stocks from both sectors as top penny stocks to watch in July.
Every day, I create a watchlist of five to 20 stocks to watch. Then I do a quick write-up of what I’m looking for and why I’m watching the stock.
Let’s get right to the list of top penny stocks to watch in July 2020…
Top 5 Penny Stocks to Watch July 2020
EV stocks are hot right now. Three of my top five penny stocks to watch in July 2020 are in the EV sector. One stock, Workhorse Group, is well beyond penny stock range as I write. But it still made the list because less than a month ago it was a penny stock.
Let’s start with the EV stocks…
Blink Charging Co. (NASDAQ: BLNK)
Blink Charging Co. owns and operates a network of EV charging stations. Its 15,000+ stations across the U.S. make it one of the largest EV charging networks. Blink’s business model is to partner with business owners for a cut of the revenue. The Blink Network connects the stations so users can easily find their next charge.
On June 17, the City of Portland announced it will add 14 Blink Chargers to an expanding network.
Then on June 21, Apple (NASDAQ: AAPL) announced its iOS 14 Maps app will track EV charge for drivers. The app will also provide route alternatives to include charging stations. In this press release, Blink’s CEO said, “We are happy to see this next step by Apple to continue to make electric vehicle charge accessible for all and further reduce range anxiety.”
Check out the BLNK three-month chart:
BLNK chart: 3-month, daily candle, top penny stocks to watch July 2020 — courtesy of StocksToTrade.com
BLNK is one of the top low-priced EV plays right now. But I’m cautious with alternative energy plays — they can be choppy. I also find them tough to hold for overnight plays. Ideally, BLNK will hold or extend its run. Then it would be a potential dip buy into a big morning panic.
ElectraMeccanica Vehicles Corp. Ltd. (NASDAQ: SOLO)
ElectraMeccanica Vehicles designs and manufactures a single-passenger EV called SOLO. The company also has a high-performance two-seater electric roadster for recovering gas guzzlers.
SOLO spiked after a June 8 update on the company’s ongoing search for a U.S.-based manufacturing site. Then, as we so often see in the penny stock niche, the company used the spike to do a $20 million financing.
The SOLO three-month chart tells the story:
SOLO chart: 3-month, daily candle, top penny stocks to watch July 2020 — courtesy of StocksToTrade.com
As you can see, SOLO managed to consolidate for several days after the big drop. SOLO was also mentioned in a June 23 press release saying the global EV market could exceed $800 billion by 2027. Again, EV sector momentum is hot right now.
The stock spiked again on June 29. A clean breakout with news and volume could make it a buy. But if it can trend up for several days, it’s more likely a big morning panic opportunity. This one trades choppy, so I’ll be extra cautious.
Workhorse Group Inc. (NASDAQ: WKHS)
Workhorse is another EV play. The company manufactures electric and electric-drive trucks. Products include the E-GEN transmission-free electric-drive and the E-100 all-electric system.
WKHS started gaining momentum on June 18. The catalyst was an announcement of a deal for 1,200 electric-powered pickups. Then it announced successful vehicle safety standards tests for its electric van. And on June 30, the company secured a $70 million financing from an institutional investor.
As you can see from the WKHS three-month chart below, the stock is soaring:
WKHS chart: 3-month, daily candle, top penny stocks to watch July 2020 — courtesy of StocksToTrade.com
WKHS is way outside of penny stock territory now. It looked to be squeezing shorts before the big financing announcement on June 30. Any shorts left got a rude and painful awakening when the news hit as the stock spiked again.
For me, I’d love to dip buy into any big morning panic.
CytoDyn Inc (OTCQB: CYDY)
CytoDyn Inc. is a clinical-stage biotech with several drugs in the pipeline. During the coronavirus pandemic, much of the PR focus has been on leronlimab. In April, the drug showed positive results for treating COVID-19 patients.
CYDY has been featured on this blog several times in 2020. It was an example of a hot OTC in my “4 Things to Watch in 2020” series. Then CYDY made it in my “Best Coronavirus Stocks” post. CYDY was also on my list of top penny stocks to watch earlier this year.
On June 19, CytoDyn presented on the Wall Street Reporter’s “Next Super Stock & Investors Discovery Day” livestream. On June 29 CytoDyn and the NIH of Mexico announced a small phase 3 trial for severely ill COVID-19 patients.
The stock kept going. But then the inevitable happened. I was watching this one, waiting for a big morning panic. It came literally as I was writing this. Check this out … It’s a tale of two charts, just minutes apart…
Take a look at the CYDY three-month chart on the day of the panic, before the panic:
CYDY chart: 3-month, daily candle, top penny stocks to watch July 2020 — courtesy of StocksToTrade.com
And now … after the panic…
CYDY chart: 3-month, daily candle, after a big morning panic — courtesy of StocksToTrade.com
That big red candle on the right is the panic. Now take a look at the June 30 intraday chart. Memorize this chart! Study it and then read my recent post on how to dip buy morning panics.
CYDY chart: June 30 intraday, 1-minute candle, perfect morning panic dip buy — courtesy of StocksToTrade.com
So why is this stock still considered a top penny stock to watch in July 2020? Two reasons: first, you need to study this panic. It was PERFECT! Second, the CYDY bounce was huge — back to $8. Plus, it has a history of multi-day runs. I’m watching for another big dip buy opportunity.
Now for the last of our top penny stocks to watch in July 2020…
Vaxart, Inc. (NASDAQ: VXRT)
Vaxart is a clinical-stage biotech that develops oral vaccines. Its oral COVID-19 vaccine was recently selected to participate in Operation Warp Speed.
VXRT was already riding momentum from news that it would be joining the Russell 3000® Index. Also, the company recently signed a deal to scale up production of its oral vaccine.
Here’s the VXRT three-month chart:
VXRT chart: 3-month, daily candle, top penny stocks to watch July 2020 — courtesy of StocksToTrade.com
Looking at the chart, the two red candles made it look as if the momentum was gone. But on June 30, the FDA outlined conditions for approval of a COVID-19 vaccine, and VXRT popped again. I’ll keep watching this stock. Ideally, it will run for three or four days, then have a big morning panic to buy into.
That’s it for the best penny stocks to watch for July 2020. Enjoy this volatility but trade safe. Remember: singles add up!
Here are some tips on choosing stocks for your watchlist and some answers to frequently asked questions…
How to Use This Penny Stocks to Watch List
Keep in mind that my strategies involve trading some of the fastest moving, most volatile stocks in the entire market. That said, some of the stocks on this list could be completely out of play by the time you read this. (Yes, even after only one day, stocks sometimes leave my list.)
The point is … don’t use this list as a signal to buy any stock. I don’t put stocks on my watchlist based on fundamentals. It’s not that I don’t look at fundamentals. But I’m not gonna lie to you. (Like so many other ‘top penny stocks to watch’ articles.) I won’t tell you to buy and hold a stock because “the market is undervaluing this stock.”
Frankly, that kind of thinking with penny stocks is … total BS. Most penny stocks fail. Just like most traders — roughly 90% — lose. So use this list — and each of my monthly penny stocks to watch lists — as a tool for learning to create your own watchlist.
Can You Trade Penny Stocks?
With the internet and online brokers, you can trade penny stocks from anywhere in the world. As far as the basic requirements, you only need a decent laptop, solid Wi-Fi, and a trading account. But don’t be fooled into thinking you’re gonna succeed if you jump right in.
Because 90%+ of traders lose. So be willing to invest in your education — because if you don’t, the market will make you pay a much higher price.
Now for five tips on how to choose the best penny stocks to watch…
5 Tips on How to Choose the Best Penny Stocks to Watch
Tip #1: Look for Big Percent Gainers
My method of choosing which penny stocks to watch always starts here. At the end of every day — and again in premarket — I look for the biggest percent gainers. And that’s what I focus on. I’m not interested in stocks that aren’t on the move.
I use StocksToTrade stock scanning software. With 40+ built-in scans — some created specifically for my strategies — it’s amazing right out of the gate. Yes, you can also create custom scans. (Hint: when you start using the software, there are a bunch of training videos on how to set those up. Take advantage.)
Tip #2: Look for Big Volume
The next thing to look for when choosing the best penny stocks to watch is trading volume. Sometimes stocks gain momentum and spike big even without news. Especially when there’s enough volume.
After I find the big percent gainers, I organize them according to trading volume. Be aware of dollar volume traded, too. If you have a true penny stock trading at 2 cents a share, and it trades one million shares, that’s still only $20K. You have to be meticulous.
Tip #3: Look for a News Catalyst
The next thing I look for when choosing penny stocks to watch is what’s making it move? Is there a press release announcing a new contract? What about positive earnings?
In biotech and pharma penny stocks you might see news of test results. Read this post to learn more about catalysts.
Tip #4: Look at the Long-Term Chart
When you’re trying to find the best penny stocks to watch, it’s easy to get fooled by one-day or one-time spikers. So look at long-term charts to see if the stock has a history of multi-day runs or has gone supernova in the past.
Which long-term charts? As many as you have time for, really. But at the very least, look at the one-year chart. I like to look back a couple of years depending on the stock and the news. If the stock trades a certain way when the company announces a big contract, I want to know.
Tip #5: Use the Twitter Scanner on StocksToTrade
It might sound a little strange if you’re new to penny stocks. But if you want to understand which penny stocks to watch, one of the best ways is to see what others are watching. Or, more accurately, hyping.
Yes, Twitter has become a vehicle for influence with stock traders. Want to know which penny stocks are being heavily shorted because they’re up 50%? Check out Twitter. Use StocksToTrade because the scanner is built-in. All you have to do is open the Twitter scanner and, voila, you get a running feed of stock tweets. And you can customize the feed if you like.
Conclusion — Penny Stocks to Watch (July 2020 Watchlist)
Your goal as a trader is to become self-sufficient. And my goal is to be the mentor to you that I never had. So I hope you’ll take this list of the best penny stocks to watch in July 2020 and use it as a learning tool.
Focus on the process. The best way to learn which penny stocks to watch is to make a daily watchlist yourself. Follow the five tips above. It doesn’t matter if every stock on your list is not perfect. Or doesn’t play out the way you thought. You get better by making your daily watchlist and then seeing what happened during the trading day.
… this list of penny stocks to watch is NOT a recommendation to buy. Also, my results are not typical and I’ve developed exceptional skills over two decades of trading.
What do you think of the top penny stocks to watch in July 2020 watchlist?
Enjoy the holiday weekend,
Editor, Penny Stock Millionaires