I just recently started dabbling in Penny Stocks and I was wondering if they seem to do better when the DJIA is moving up or down.
I haven't noticed much correlation over the last 2 weeks.
Posted by Free Muney on :
save your money unless you really know what your doing. but no real coorelation, to answer your question. that I've seen.
Posted by Machiavelli on :
We'll the DJIA did great after Uncle Ben cut the rate a half point and so did one of the penny stocks I hold that was lagging two trading days in a row prior... so yes I do believe some pennystocks benefit from the DJIA's gains...
Posted by NaturalResources on :
Some suggest that penny markets do better when the big boards are doing better simply because when people are in the green, they are more inclined to take greater risk... i.e, penny stocks.
The reverse could be true as well... Who wants to take a bigger risk by buying penny stocks when there is blood in the streets....
This is all IMHO of course, and I've only been trading for a few years... (Not very successfully, might I add)... so do your own DD.
Posted by T e x on :
In my experience, the overall effect of the bigs is almost irrelevant to pennies.
Note: "almost"
I do agree with Mach, though: certain, specific issues may correlate. I remember Dusty saying he noticed more volume in pennies when things went sour on NASDAQ--and to some extent, re* AMEX and even NYSE.
Personally, I have not done the work to confirm or deny. My sense is some "crazy money" pumps into pennies when the bigs go south, just cause there's always traders who feel they have to trade, no matter what.
*NOTE: that's a BAD idea/compulsion--any time one feels like he/she MUST get in a trade? is time to walk away from the keyboard...
Good inquiry, though. I'd like to see some data from a well-engineered study. Might already be out there: lottsa academic studies on market behavior
Posted by FrankNitti on :
quote:Originally posted by SandRacer: I just recently started dabbling in Penny Stocks and I was wondering if they seem to do better when the DJIA is moving up or down.
I haven't noticed much correlation over the last 2 weeks.
It's all speculative...I feel it is mostly irrelevant (wow, is that spelled right, cause it does not look right?)... studys saying varying results...I feel it has no bearing UNLESS there is a global crisis...or market crash...As with ANY stock (no matter what market it rests in) do your DD and good luck!
Posted by FrankNitti on :
![[Frown]](frown.gif)