posted
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...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
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.
-------------------- One is never completely useless. One can always serve as a bad example. Posts: 2430 | From: CA | Registered: Jun 2005
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posted
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
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!
-------------------- Please DON'T invest on JMO. Do YOUR research. Invest UR money the way YOU would like to! Thanks! ;) Posts: 936 | From: Virginia | Registered: Aug 2007
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-------------------- Please DON'T invest on JMO. Do YOUR research. Invest UR money the way YOU would like to! Thanks! ;) Posts: 936 | From: Virginia | Registered: Aug 2007
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