So I am not quite sure how I will go about posting new content on pennystockspennystocks dot com yet.  Perhaps I will post penny stocks that fall in the ‘watching category’ which will probably be about 99% of them and then once in a while I will post penny stocks that move into the ‘high alert’ category.

The fact is that most penny stocks and penny stocks setups are horrible.  But perhaps one tenth of a percent of the penny stocks out there at any given time are SUPERB setups.  And the superb setups do not come around that often.  Image if you could jump into just 4 or 5 total penny stock setups for the WHOLE YEAR and each of them were huge runners.  Wouldn’t you rather do that instead of throwing good money after 100’s of bad?

PGCR Placer gold corp which I previously profiled on this site some time ago was one of those superb setups.  It had a BEAUTIFUL technical analysis backdrop which I described clearly in those posts.  It was extremely powerful.  The best penny stock setups have clear parameters which make them superb candidates for big runs and sometimes sustained runs.

I don’t claim to be able to always pick the most perfect penny stock winners on any given day week or month, but I do claim to have a good ability to really FILTER out the junk setups from the true pearls.

Regardless, it is a constant learning process comparing past moves, time frames, chart patterns, volume, overall price behavior, fundamental backdrop and a bunch of other factors all combined into one.

Sometimes you will find a certain sector of penny stocks doing a lot better than other sectors for a 1 to 3 month period of time.  This can be due to many different reasons but is usually related to how hot things are in the more mainstream sectors of the stock market.

Sometimes we have seen big cap, and mid cap biotech stocks extremely strong on the major exchanges.  That type of action can lead to a biotech penny stock surge.  Another example is oil and gold.  When the price of oil was zooming up to $150, it created a feverish pitch for many oil stocks and then eventually oil penny stocks.

But now we have a new fever developing and it is called gold fever.  The gold price is moving from orderly price advance to parabolic advance.  The mainstream gold stocks are JUST STARTING their moves.

But still, even now we are already seeing penny gold stocks get some running legs.  Recently we saw BRYN and KATX do some huge huge moves up.

But now CVRG seems to want to get a run going as well.  They just came out with a PR afterhours on 11/18/2009.  The structure of the chart is quite promising because it has saucer bottom possible formation and a previous super spike high of .445 cents.  That swing high was on blowout volume and it is wide open because it was never tested.  It could mean a run back up to that level by end of this year or early next year.

It is very hard to predict how far or strong any penny stock will run.  PGCR had a blowout type run north of .02 and the run basically only last a few days.  But I would say that the penny stock runs that start slow and orderly and build gradual momentum have a much better chance of a more sustained run and higher run.  This may be the case with CVRG and especially with a cooperating gold price into the end of the year.

My forecast for the gold price is for 6 to 9 months of price appreciation that could put it in the 1400 to 1800 range.  We are only roughly 3 months into the gold price advance so far, so I think we have a good 4 to 6 months more ahead.  The current price advance in gold is a massive upside breakout from some much much larger patterns and that is why I think those that do not focus on the larger patterns will be confused as to how gold can sustain such a long and persistent run in the months ahead.

Anyway a 38% fibonnaci retracement from the .445 highs to the recent lows would set a target price of .18.   So it would seem that could be a minimum target. 

Again, I like the long saucer type bottom formation.  We also have a weekly MACD cross that just occurred.  On balance volume and accumulation distribution both look very bullish to me.  The 50 day moving average is making a stance for a golden crossover with the 200 day perhaps within a week or two.

So all the above points mentioned tell me a new mini bull market is starting in CVRG…