Penny Stocks

Liberty Star Uranium & Metals Corp LBSR is trading like a blue chip stock lately even though it is a tried and true penny stock.  A couple days ago we indicated that we are going to be providing ongoing coverage of LBSR because we recently gave it the highest rating of 1 here at penny stocks penny stocks.com and because of our confidence in the price structure.

I cannot say for sure whether or not we will provide daily coverage on LBSR but we will make commentary when it is appropriate to do so.  We do technical analysis here but we do realize that the LBSR is also a fundamental one.

Penny mining stocks are unique in that they can move in a leveraged aspect relative to the size or value of what they have in the ground.  Perhaps they are a bit similar to biotech penny stocks in that the stocks trade on the potential and milestones which would eventually lead to a big cash inflow.

These stocks can make extraordinary vertical moves that would in some cases seemingly invalidate the technical analysis.  But it is our view that technical analysis is never really invalidated, but instead sometimes pushed to the limits.  For example, the long term uranium price chart showed us that uranium went into a mega bubble that pushed the relative strength index to seemingly impossible high levels (greater than 90 for a long time).  A typical technical analyst would probably have seen the 90 RSI level and then said it is extremely overbought and cannot go any higher.  Well it did go higher, much much higher into a blow off super spike.

So keep in mind that our technical analysis of LBSR will try to mainly focus on whether or not LBSR is maintaining its trend strength.  But we may be rough around the edges on the daily moves and if/when LBSR goes into a blow off type upside run.

Today’s Technical Analysis of LBSR

The purpose of this post is to look at the near term technical analysis of LBSR on the daily price chart to see what we can observe about the near term picture.

First, before I start to discuss the chart below I do want to apologize for not showing today’s price candlestick at the correct closing value.  It is still 15 minutes before the close and LBSR will probably close near the top of the range today.  So when you look at this chart below keep in mind that the latest price candlestick is at a closing value of .038 .

The daily chart of LBSR is very interesting because if you were to put this chart in front of my face not showing me the stock symbol and not showing me the current price it is trading at, I would probably assume it is just a nasdaq small cap stock with a very nice ascending triangle chart pattern.

The key observation in this chart is clearly the enormous sign of strength moves with the big marubozu candlestick price bar on about 46 million shares.  That candlestick was basically the lighthouse signal that LBSR is ready to start something big.  We must respect the signal that candlestick bar is telling us.  The signal it tells me (especially after trading in a long 1 to 2 year base) is new bull market.

After the mega spike to .03 on very heavy volume LBSR then transitioned into a consolidation which is perfectly normal and to be expected.  I suspect this pattern will repeat itself over the next few weeks, months or even 1 year time frame.  It is the nature of stocks to breathe in and exhale just like people do.  Small cap penny stocks in long term uptrends tend to do spike moves up and then transition into choppy trading ranges building cause for the next move.

Since the consolidation started in early July 2010 there have been a series of key reversal hammer candlesticks that have marked reversals in the short term consolidation phases.

The most recent one was a doji reversal hammer and led to today’s big breakout from this medium size ascending triangle.

The breakout from the ascending triangle looks valid to me today.  It showed wide price spread and zero supply coming into the stock by the end of the trading day.  The candlestick looks somewhat close to a maribozu type candlestick (where the open is equal to the low and the high is equal to the close). 

The closing volume today was about 6.8 million shares.  This is good but it still falls far short of the peak breakout volume of 37 million shares.  But the key today was that we closed higher well above the resistance level and above all the previous swing highs, a bullish sign.

Since the volume was dramatically lower I see at least the possibility that we pull back tomorrow to test the .0338 level or slightly lower before resuming higher.  Sometimes they initiate an early shakeout to test and touch new support.  It is actually quite common.

Finally I want to get to one last important point about today’s chart structure and that is that in terms of the RSI (Relative Strength Index) we have just entered what is known as the bullish power zone for the second time.  This level resides above the 70 level on the RSI portion of the chart above and is an indication that the bull are in control.  In fact they live and breathe up in that level.

So I suspect we will see follow on strength during the rest of this week until price blows itself out and reaches another intermediate term peak.  This peak could coincide with another RSI daily chart reading near the 94 level.  After the next intermediate term peak I would expect price to enter another consolidation to define a new range.

It is guesswork to predict how many days the RSI can stay above the 70 range.  The last time price peaked out in about 4 or 5 days as shown in the chart.

It will be interesting to see the follow through action tomorrow and the volume as well.  There will be pullbacks for sure, but for now the trend is strongly higher from the looks of the chart.

I will have some future technical analysis posts coming on the penny stock LBSR that talk about the weekly chart and the important dynamics that are going on there.

This post is just a quick heads up that VKNG or Viking Systems Inc moved above what I consider to be very important resistance at .28  I believe this ‘mature’ penny stock is slowly starting to build trend strength for a stage 2 advance that should eventually take it back up to $1.00 range again.  In the near term the .28 level would ideally hold up as new support.

It will probably take a good amount of time to get up there again, but the first key date remains the early October period as I indicated in my previous post on biotech equipment company.

VKNG can have a somewhat spotty trading style but it is important to keep the larger chart structure in mind which is a huge sign of strength from .005 to $1 range, then a long saucer bottom type formation of 3/4 of a year in length.

The best setups are those that evolve from very large patterns and show clues and signs of strength within.  I can name you plenty of penny stocks that move big every day but which ones have some real ‘meat’ behind them ?  That consideration is one of the most important ones to consider in this volatile sector.

The VKNG setup is quite rare in my opinion but it will probably take a good amount of patience to see it play out fully.

The volume was robust today but still not of the level I would expect to see for the start of a mega move.  Keep in mind that the previous run of .005 to $1 only took about 15 trading days.

We are still almost 2 full months away from early October and also still in the low volume trading month of August.  So I suspect there will still be some games being played for a while in this stock.  But September 2010 should be a much different story.

I have been thinking a bit more about the micro cap gold copper and uranium exploration company LBSR or Liberty Star Uranium & Metals Corp over the last several days and  have come to the conclusion that LBSR deserves more ongoing coverage in the days and weeks ahead.

There are several reasons for this which I will try to outline below. 

Occasionally there will develop important themes in the market or in any individual stock.  I suppose another way of saying this is that certain sectors in the penny stock arena have very unique characteristics unlike other sectors that can dramatically affect the price in different ways.

Liberty Star Uranium & Metals Corp is an exploration company penny stock in the precious metals sector.  Over the course of the last 10 or so years I can tell you that I have witnessed and also participated in some of the wildest penny stock runs imaginable.  I cannot say that every big run I have seen or participated in has been a penny mining stock, but a lot of them have.  Some of the most sustainable longer term runs have been in the micro cap mining penny stocks.  But why?

I think part of the reason is the unique leverage aspect of any penny mining stock.  You can have a seemingly worthless company based on their share price, but based on undiscovered aspects of their mining claims, they could be sitting on a mega million dollar bed of precious metals.  Most if not all of these micro cap mining companies are already struggling financially so there is no surprise there.  So the key is for them to be able to somehow validate the rocks they have sitting under the ground for which they have claim to.

Once that process begins and shows some signs of real momentum it can have a dramatic effect on the share price.  The number of micro cap penny mining stocks that actually ‘graduate’ to full fledged mining companies is probably only 1 in a 1000 or maybe even 1 in 100,000 ( I really do not know, I am guessing).  This however does not mean that a penny mining stock cannot have a huge run based on ‘hope’ that it will become legitimate.

So that is what I believe happens most of the time.  Hope plays a big part of it and one has to know when to run for the exits.  Of course not all mining stocks are going to make huge runs just because they are mining stocks.  Probably many or most of them will never make that big run.  It is only the few carefully selected hand picked ones that have all the right stuff in terms of their stock price chart and overall technical analysis (very important) and their ‘story’.  Some of them are lucky to have both, a good story and good technicals.

The Gold Price and Other Metal Prices

The main precious metals that relate to big penny stock moves are gold, silver, copper and even uranium.  The prices of these commodities can sometimes be very relevant to the overall moves in a penny stock.  They can help to amplify a current penny mining stock run or start a brand new run in a previously ‘dead’ penny miner.

The backdrop of a very strong rallying commodity price can be very helpful to the appetite investors and traders have for the tiny miners.

I recently did a post on a possible major top in the gold price and also a post on the possible new bull market in the uranium price.  I have since change my tune a little bit about the top in the gold market as it is currently acting somewhat better.  It will be very key to watch the gold price closely as we move into September 2010 because this is the strongest seasonal month for the gold price.  If gold can get a nice move into the end of August 2010 and really catch fire in September 2010 it may initiate a very strong new move higher which could be a very key speculative element for all gold mining stocks of all levels.

If a new mania type run develops in the gold price it could present a very nice backdrop for most mining stocks including the penny stocks.

Technical Analysis of Mining Penny Stocks

The technical analysis picture of a penny mining stock is as important or more important than where the actual commodity price currently trades at.  The mining penny stocks that have nice long bases and massive volume showing interest and demand are cream of the crop.

I am still studying the chart of Liberty Star Uranium & Metals Corp but I believe it has all the right stuff as of this posting.  It has a long base, and a very nice second strong move off of that base that also tested a previous shelf on dramatically higher volume.  This is a very good sign.

On Going Coverage of LBSR

So my basic point of this post is to say that I believe LBSR has all the right stuff and in the coming days and weeks I will try to analyze the moves that are of significance.  As long as it keeps ‘behaving’ I am going to keep covering it.  But when I feel that it has busted the bullish outlook I am going to have to pull the plug on it.

As I start to post somewhat more here at penny stocks penny stocks I am thinking that the best approach to penny stock coverage is to find a few diamonds in the rough if at all possible and then try to provide more close coverage of them until they either validate my outlook, or cancel it and break down, at which point I would of course stop my coverage.

A lot of penny stock sites out there throw a bunch of symbols at you every day without going into much depth as to why or where or what is going on with each particular penny stock.

I try to take a different approach.  I like to try to go into more detail into the penny stocks that DESERVE more attention based on what I consider to be better than average bullish parameters.

Still, the key is to be flexible as possible.  Sometimes there are 1 to 5 day trades out here in penny land.  And honestly I have to tell you that the big time best penny stock setups, the ones that move 500 to 1000% do not happen that often in a given year.  Maybe there will be 5 to 10 of them in any given year.  I could be wrong about this, but that is my sense looking at this sector over the years.

So I am going to do my best to find the biggest possible setups but it is going to take a lot of patience and perseverance.  It should be an interesting journey.  I will change my approach to writing about penny stocks as appropriate.

I should say also to be prepared for dramatic changes in opinion.  This is just the nature of the business.  A stock can behave very well for 40 days.  But if it does something on the 41st day that severely violates what I consider to be a valid uptrend, then I would have to shift my stance very quickly. 

Keep your head up!

Lets work on this together and make the best of it…

A buddy of mine mentioned STRATTON HOLDINGS STHG to me in an email the other week and I am consistently amazed at the penny stocks he seems to find that are usually of high quality and good chart structures as well.

The chart of STHG shows how it had an absolutely amazing run up from .0009 to .02 and change!  That is an amazing penny stock run by any comparable standard.  That is the kind of run that should have options traders wondering if they are in the right business.  A move from .0009 to .02 is like a regular stock moving from 9 dollars to 200 dollars.  Truly amazing.

But what strikes me about the chart of STGH right now is that for the last month or so it has traded in a series of swing trading ranges and is almost trading like a blue chip stock with similar signals.  It is a superb example of how penny stocks can also behave in a somewhat respectable fashion with a little patience and observation.

If you look at the chart above you can clearly see where I have drawn the red arrows that STHG formed reversal hammers that EACH TIME has lead to a move back up topside to the top of the swing trading range.

Keep in mind that this swing trading range is no small deal.  We are talking a range of 30 to 50%.

The other interesting point about STRATTON HOLDINGS right now is that the swing high on 6/24/2010 which marked the peak of the run up was on high volume and was never tested.  This is clueing me into the idea that this swing high needs to be tested before we can say the run is over.

Right now the current swing trading range seems to be bumping into resistance line near the .009 range.  If STHG can blast above .009 then I think it has entered the zone where it could get a new move back up to the swing high near .02 again.

The volume has been robust throughout the entire swing trading range and shows the stock is being supported here.

Definitely an interesting one to watch here for future possible moves with some interesting key levels to watch for.

I will probably do some follow ups on STHG in the future depending on what transpires in the chart of this penny stock.

I have been thinking about a potentially very important question in recent days…  Are call and put options a better trade then penny stocks ? Or are penny stocks a better trade than call and put options ?

I have come to the firm conclusion in recent days that penny stocks are by far a much better risk reward trade than any call or put option.  Think about it.  Penny stocks do not have any expiration date and do not suffer any time premium leakage as time rolls on.  Penny stocks can be analyzed chart wise for large technical analysis patterns just like regular stocks can.  I would say these are the main two advantages.

Options suffer from the loss of time premium as time rolls on so you not only have to be right on the direction but also within the time constraint as defined by the expiration date of the option.

Call and Put options can have horrible bid ask spreads depending on the underlying security and can also move very fast if the stock moves against you.  This is also true for penny stocks, but again, it really depends on the penny stock we are talking about.  Some penny stocks that are liquid enough actually have decent bid ask spreads and make for a reasonably manageable trading environment.  Others are extremely thin, but at least the ones that are thin can actually be analyzed on the chart.

What about penny stock trading leverage versus options leverage ?

The upside and downside leverage of options is clearly large but that benefit is again minimized in my opinion by the time decay and lousy bid ask spread.  In the options I have traded over the last few months I would say for the most part there was a  clear opportunity to achieve a 100% return with a rare chance of getting more than that.

But I have seen more penny stocks move in 100 to 500 % moves than I have seen options move like that.  And the 100 to 500% moves in the penny stocks did not come with the stress of time expiration.

Sometimes there exists penny stock chart setups that go back over 1 or 2 years long and define extremely high reward/risk scenarios.  The best penny stock setups are those that cover a large pattern over a long period of time, maintain that pattern and then break out from it.  It can lead to 500% to 1000% moves, all without the risk of time decay or expiration dates.

Now don’t get me wrong, I am not saying that penny stocks are a walk in the park and as easy as shooting fish in a barrel.  They aren’t.  But if someone told me they want to trade either penny stocks or options for the next 10 years I would tell them with zero doubt to stick with penny stocks.

To be honest I am quite surprised that both the pinksheets.com website and the OTC BB main website does not market penny stocks competitively against the whole options industry.  Think about all the business they could siphon off of current and potential options traders which represents huge potential dollar volume.

You don’t have to agree with me on this one, but I think it is a very interesting comparison.  Keep in mind though that I am comparing the buying or selling of call or put options to penny stocks.  I am not talking about all the complicated and more sophisticated options strategies out there.

Feel free to comment on whether you agree or disagree with my points.

CytoSorbents Corporation CTSO may be about to break out from a symmetrical triangle formation.  I thought it was worth a short mention.  CytoSorbents Corporation trades on the OTC BB exchange (this is usually a positive point I sometimes give weight to as I consider stocks trading on the OTC BB of generally higher stature then those that trade on the pinksheet exchanges) and appears to be a biotech penny stock that has a blood purification technology.

I happened to have it on my watch list and have been eyeing it now and then but noticed today that it appears to be as about compressed as it will ever be right into the apex of a somewhat large 1 month symmetrical triangle formation.

It looks like north of .095 is where CTSO needs to be to get a run going.  The symmetrical triangle has possible target implication of about .12 which would be about 20% from here.

The risk is that the price of CTSO has travelled all the way into the apex of the symmetrical triangle which makes it less reliable.

There has also been somewhat of a volume surge in this penny stock during the last 4 days but price has barely moved.

This stock has shown that it has the ability to move a little bit in the past.  It went from .06 cents to .40 cents in 2009 after a previous long consolidation.

Presently the stock has been trading in a long down trending channel and the apex of this triangle meets pretty close to where the down trending channel line sits.

Finally I should say that I have noticed in recent days that many penny stocks are starting to come alive.  Perhaps it has to do with the broad market speculative recovery from its mini bear market, or perhaps it has to do with penny stock investors anticipating the beginning of penny stock trading season.

I was looking through my penny stock scans today and Liberty Star Uranium & Metals Corp came up.  I was shocked when I looked at the chart of this penny stock because of the beautiful advance it made from a long base.  Needless to say I am disappointed to have missed that huge from from .003 to .03.  That is like a regular stock moving from 3 to 30 dollars!  A very nice move.

But now this uranium penny stock has consolidated in a sideways triangle and may be getting ready to advance again.  Today it moved nicely but I suspect that it is not entirely ready for prime time yet.

The larger structure of this uranium penny stock is indeed quite attractive.  Despite missing the move from .003 to .03, there may be a lot more to come.

It appears that a large part of the reason for the move in this stock was a jump higher in the price of uranium.  Remember a few years ago the price of uranium shot higher from 8 to $160 per pound of uranium.  It was one of the most unbelievable commodity advances the world has ever seen.

I used to have a price chart of the spot uranium price and will look into plotting it again with indicators so that I can get an idea of what may unfold with the uranium price.  It would be nice to see another ‘uranium mania’ of sorts to help this stock move along.

Anyway the nice thing about Liberty Star Uranium and Metals Corp is the longer term chart since late 1998.  The chart shows a long base followed by the recent massive rise on massive volume.  That is a very good sign in terms of the overall structure of the chart.

It could be argued that this uranium penny stock has formed a massive cup and handle pattern with the handle almost completed.  This could mean that we are headed for .05 plus in the months ahead, perhaps even .10.

It looks like key longer term resistance that needs to be overcome is .028.  Full price bars above this level would be a good sign that LBSR is getting ready for prime time again.

I do not think it is quite ready yet however.  It needs some more work around the current range, perhaps a somewhat sideways consolidation and then an eventual breakout later.

I think I have to give LBSR a penny stock rating of 1 on the penny stocks penny stocks dot come rating system because it has robust volume, a very nice large pattern and a clean price structure.

If the uranium price rise turns into a mania again then the sky is the limit for LBSR.  I will try to get the spot uranium prices into my charting program again so that I can determine what kind of bull market we have with the current uranium price.  It has been a long time since the price of uranium did that moon shot to 160 dollars a pound.

The supply demand relationship for uranium may be one of the strongest in the entire commodity sector and can lead to astounding gains.  The world is hungry for energy and most alternative energy will not be enough to compensate for world energy demands.  And if oil becomes more scarce then it would seem uranium is the next best thing to keep the lights on.

I am somewhat astounded that I have in only the last few days already given two stocks a 1 rating on the penny stocks penny stocks rating system.  Most stocks I cover here will likely not get this rating because of the rarity of great penny stock setups.

I am upgrading Viking Systems Inc to a penny stock rating of 1 because the chart is starting to shape up extremely attractively from my view and there are also some forward looking events that will be extremely relevant to the performance of the stock.

This penny stock appears to have some real potential based not only on the technical analysis of the chart but maybe be one of the few penny stocks out there that actually has a chance at making some real money.  They have a 3D HD tool for surgeons.  You can read their recent corporate PDF presentation on their product.

They are planning the launch of their product in Q4 2010 and are in the final phases of product launch and plan to present it on October 3-7th 2010 at the American College of Surgeons Clinical Congress where over 9000 domestic and international surgeons will be present.

This date looks like it is going to be a very important forward looking event for Viking Systems Inc and I suspect the stock will trade higher right into this date.

You have to like the market here and the potential in terms of sheer size.

I don’t normally talk about fundamentals that much but it seemed prudent to cover at least a little bit of that ground with VKNG because they appear to be moving past development stage into a company that actually sells a high value product.

The technical analysis of Viking Systems Inc looks good right now as well.  Moving above the .28 price point would be a significant milestone for this stock as it would put it above a 3 to 4 month trading range.  Two days ago it has shown a nice big marubozu candlestick on robust volume and engulfed at least a months worth of prices.

Viking Systems Inc has many of the qualities I look for in a superb penny stock.  It has the previous mega run from .005 to 1.00 a year ago showing an enormous sign of strength.

Since then it has consolidated for a very long time essentially sideways with a few big volume spikes in between coupled with big demand price bars.

I think VKNG is getting ready for prime time into October 3 to 7, 2010.  Usually there tends to be a lot of excitement about a product launch and into an important conference.  This is good, but it is different from actually selling 1000 of their products.  This is why in penny stocks penny stocks dot com opinion, VKNG will likely rally into this date range (now 2 months away) and then fizzle out after the excitement dies down.

Viking Systems Inc is also showing a weekly MACD histogram buy signal and the weekly trend appears to be set in the upward motion now.

Above .28 is key for VKNG right now and if achieved could start a slow and steady uptrend channel.

VKNG gets a penny stock rating of  1.

Majic Wheels Corp is a pinksheet penny stock whose sole product from what I can tell is this little toy car that can drive vertically on any wall and also on the ceiling above you.  It seems like an interesting concept for a toy but I am trying to put my ‘little kid hat’ on and wonder if this product could ever hit mainstream and be a hit.  To be honest I am not sure.  It suppose it would be a hit to show off to your friends (isn’t that one of the big reasons why kids love toys so much anyway so that they can show them off to other friends) but maybe after a little while the novelty would wear off.

But that is probably true of most toys anyway after a while.  I guess it depends on how complex the toy is and the levels you can take it to.  This product seems like it is somewhat uni dimensional.  Still it is an interesting concept.

You can see the video of this gravity defying remote control car here.

More interesting is the price chart of this penny stock.  It had a huge move up today almost 83% and the chart seems to have a saucer bottom formation.  Today’s volume was the highest since February 2010.

I like the general shape of the trading pattern since February 2010 as I indicated earlier a saucer bottom formation.

I also like the fact that volume basically dried up to nothing during mid July, it was practically non existent and there were no trades for several days at a time.  The reason I like this is that it tells me the stock had reached its selling exhaustion limit.

The candlestick on Majic Wheels Corp today printed an absolutely beautiful MARUBOZU candlestick which shows that the buyers took control right from the open and closed right at the highs which shows they really controlled the action and trend all day.  Seeing a marubozu candlestick near the bottom of any price chart is always a good thing because it shows a complete transfer of demand after the previous bear market.

I also like the fact that this marubozu price candlestick has tested the previous shelf of swing highs on dramatically higher volume.

So that was the good. What about the bad?

The bad part about this penny stock is that it has very spotty inconsistent volume.  This is never a good thing even in penny stock land. Because of the spotty volume MJWL has the ability to do 100% retracements of an upside move very quickly.

I suspect this penny stock will gap up at the open tomorrow.  It seems to have the possibility of reaching .015 to .02 but again the spotty volume is a definite risk element.

The low volume is the reason why I cannot give this a penny stock rating of 1.  I am guessing here but this penny stock may be able to maintain a robust 2 to 3 day volume pattern into the end of this week.  But again, it has shown the ability to retrace very dramatically despite the promising nature of the chart.

KAT Exploration, Inc. is possibly setting up for a very important breakout above the recent trading range.  I was looking at KATX very critically over recent weeks and wanted to be sure that it would not break below 5.5 cents.  It has not broken this support and is an internal sign of strength.

The overall structure of KAT Exploration, Inc. is looking quite bullish and I am upgrading the penny stock rating on KATX to a 1 (our highest rating level). Why?

Well because KATX has now shown us that it is unwilling to break down below 5.5 cents and it wants to maintain the current strong longer term trading range and is now at the top of the trading range for the THIRD TIME.

Usually a stock or index will succeed on its third attempt at breakout out.  Usually, not always. But I like the recent three day move and I also like today’s intra day reversal.  The candlestick looks great.

It is also nice to see KATX performing so well given the recent overall market weakness and the general sloppy trading and weakness in the gold price.  This is a very good sign.

KAT Exploration, Inc meets most of the criteria I look for in a superb penny stock trading setup.  It reminds me of the setup that Sarissa Resources had over a year ago.

I like the fact that KATX has a lot of SIDEWAYS CAUSE and has not broken down.  KATX is a great example of the type of penny stock we like to identify here!  If you ever see a penny stock with a similar setup to this one please do tell us about it so we can share it with our readers!

If KATX is able to hold and maintain a full price candlestick above .092 (possibly next week ?) then it has a clear path to about .17 cents.  There is almost no resistance all the way up to that point and it could be reached in short order.

Certainly a huge gold price breakout would help things along as well, but for now KAT Exploration, Inc seems to be doing quite well on its own too.

According to bloomberg.com KATX currently has a market cap near the 37 million dollar range.  This is a bit of a concern as it become increasingly rare to see ANY penny stock trade above a 100 million dollar market cap.

Assuming KATX is able to successfully trade to the .17 range, then the next level of resistance is the .45 range. 

For KATX to get to .45 range it is going to have to once again form another sideways base of many months duration.

If things get wild enough in the gold market and the gold price is able to get a super spike going then I think it could be reasonable to see KATX eventually reach the above mentioned targets.  A lot of the next moves do depend on the gold price in my opinion!

You might notice that I have not even mentioned any fundamentals about this penny stock.  The only thing I need to know is that it is a gold stock and that the gold market so far is still in  bullish stance.  The chart itself right now is speaking enough to me that it is all I really need to know for now.

The strength of KAT Exploration stock in the last few days despite overall market weakness is a great example of how many times you will see penny stocks trade completely independent of other market indices.  It is almost unbelievable how they do it.  But in a certain sense they become safe havens to the rest of the market.  But for this to happen the stock must have some very strong hands, a very good story and some committed shareholders.