A quick update on RVGD.  I mentioned in my other post that in order for RVGD to be a good breakout candidate, it really needed to make a strong rally back up to .0035 into the close.  Well it did not quite do it in one day.  Instead it took two, and for now it does still look quite promising for a breakout.

It is possible we could see a gap up tomorrow and then news on Monday of next week.  If we do start to get a strong breakout, I think then we have to pay attention to the downside resistance, of which it has plenty.

I will do one more update on Revenge Designs, so it will be interesting to see how it turns out.  It seems like a high probability setup, not perfect, but not too bad either.

I currently see downside resistance at about .015

Revenge Designs is just one of a few sub penny plays that are hot right now.  CYOS also had a big spike on Thursday and looks promising for Friday.

For the most part the penny market still seems alive and well, even with the huge broad market correction we have seen in recent weeks.

I have to be honest and tell you that I really wonder how much longer the penny stock boom cycle will last.  Let us keep in mind that the broad market has been charging higher since 2003.  The penny market has been booming for quite some time as well. So if the broad market goes into a really severe bear market, it does bring up the question if the penny stock market will be crushed as well.  That is not to say there will not always be a few good opportunities in the penny market, there always are, but perhaps the frequency of them might dry up a bit if the broad market goes into a severe bear market.

Anyway, just something to keep in mind considering how long both the broad market and penny market has been to us!

Ok peace. That’s all for now. Keep an eye on RVGD.

I was watching Revenge Designs trading today because it seemed to have a nice setup and a possible break out from .0035 resistance.  The chart seemed to hold a lot of promise because in past 2007, RVGD had two previous huge spikes so it has already shown that it has the real ability to get a good rally going.

Also notable is the huge surge in volume during the last 30 days and that happening under the longer term resistance line of .0035.  I usually like to see big volume under a longer term resistance line because in some cases it supports the idea that pressure is building up under there and will make the breakout that much better.

Anyway, as far as today’s action goes, it was extremely volatile for RVGD.  Make no mistake, volatility in the penny stock markets is pretty much a guarantee, but occasionally you even see it ramped up to a much higher degree than expected.  That was definitely the case today.

RVGD made a minor surge today to test the previous near term resistance high of .0034 during the first half of the trading day.  But almost immediately upon hitting that level a massive sell off ensued sending RVGD down very hard to an intra day low of .0015.  A few seconds after hitting .0015 RVGD rocketed higher like it had just touched it’s toes to a bed of hot coals.  The reaction rally send it back up to about .0027 and then we saw it drift down into the close to settle at around .0022.

Can RVGD still make a breakout above .0034 this week ?

That is the ultimate question, and the answer depends a lot on whether or not RVGD can pull a rabbit out of the hat and again find a way to rally and breakout higher similar to the way it did in November 2007, the previous huge spike higher.

If you look closely at the chart you can see that right before the huge November rally higher there was a very severe shakeout that slammed price right down and retraced almost all of the previous 5 days. Was today’s action a repeat setup of what happened in November 2007? We sold off very hard and recovered a good portion of the losses today.  The price action does look very similar to the setup in November.

The bottom line is that if the scenario is going to play out again, then I would say we need to see within the next couple of days a resurgence back to .003 and then quick rally higher.  If anything less than that happens, RVGD may be dead money for a a good while longer.