Last week was a big week here. We had numerous inquiries regarding where to take stock under .10. We are still checking out sources to help small companies out. Meanwhile we did help a few people out with stock placement. And… no, we did not charge them money for it. Another intriguing source has come to light lately and we are going to see if they can help or if it’s just a scam.

We have had a good discussion with the comments to that first article and a few items have been cleared up.

The DTC eligibility problem is beginning to affect more and more companies. Client Company Bebida Beverage’s (BeBevCo) CEO Brian Weber announced in a news release on Thursday of this last week that he is going to get to the bottom of the DTC eligibility problem for BBDA.

Big Week for Client Companies

Daily Chart Courtesy of Yahoo! Finance

Several of our client companies had big weeks. ProtoKinetix (OTCBB: PKTX) traded bigly on Friday. The stock was up .0225 to close at .05 on volume of 3,526,292 shares. Average daily volume (20 day average) on PKTX is 254K shares.

Earlier in the week (Wed, 20 July), IBRC traded 73,548,460 shares which was a bit more volume than their average of 171K shares a day. The stock was up .001 after opening at .0009.

We will be watching SLLN, IBRC and PKTX for moves this upcoming week. I also expect to complete another interview with Brian Weber, CEO of BeBevCo which should be interesting given the news on Thursday of last week. He says business is going extremely well; now, if we could just get the stock problem resolved.

Rapid Fire Marketing (OTC Markets: RFMK) which has been trading really good volume over the last 2-3 months is expected to continue to build out their marketing program and expand their business. We will see how they do with it.

Disclaimer: BBDA, PKTX, IBRC and RFMK are client companies. We do not buy, sell or own stock in client companies. See our disclaimer page.

We all want to find the next hot penny stock. I have often explained that my trading system is simple. I believe the fewer the moving parts, the better. A basic understanding of supply and demand is all that is needed to begin to learn how stocks react to buying and selling in the marketplace.

One of my favorite indicators is the Money Flow Index (MFI). It is a very simple indicator and the way it is derived is quite simple.

A good explanation of MFI comes from Investopedia:

Typical Price = (High + Low + Close) / 3
Money Flow = Typical price * Volume
Money Ratio = Positive Money Flow/Negative Money Flow

Note: Positive money values are created when the typical price is greater than the previous typical price value. The sum of positive money over the number of periods used to create the indicator is used to create the positive money flow – the values used in the money ratio. The opposite is true for the negative money flow values.

Money Flow Index = 100 – (100/ (1 + Money Ratio))

The money flow index is similar to the relative strength index (RSI). The fundamental difference is that the MFI also accounts for volume, whereas the RSI only incorporates price. Many traders watch for opportunities that arise when the MFI moves in the opposite direction as the price. This divergence can often be a leading indicator of a change in the current trend.

A change in a stock’s trend is why I really like the MFI. The MFI will often trend back up before the price does.

So now let’s look at a stock from today’s scan and see how the MFI works:

The price trend reversal happened within the last few days (dark blue arrow on chart above)  but the MFI reversal occurred back in late May (red arrow). This is why I really like MFI because it is a LEADING  indicator.

Disclaimer: No position in WGAT and no compensation.

No many stocks hitting the scans as of Friday’s close. One good looking chart is that of CytoSorbents Corporation, (OTCBB: CTSO). The stock has been up 4 straight sessions now. After a long consolidation, the stock may be ready to move up again. Time will tell.

Others:

IDWAF – We mentioned this stock on the 26th of May. Wow, look how far it has come. Just another of the many winners we have picked over the last couple of months.

MKBY had a big breakout on Friday closing at .03ish after opening at .018.

ELTP is trending nicely closing around .16 on volume of 2.85 M shares.

Disclaimer: No position and no compensation.

Among today’s hot penny stocks on the micro caps, Green Bridge Industries (Pink Sheets: GRBG) is breaking from an apparent short term bottom. The stock has been up the last 4 trading sessions.

Here is the data for GRBG for the last 4 days:

date         open        high        low      close     change     volume

06/06/11   0.0026   0.0055   0.0024   0.0050  +0.0026     5,433,408
06/03/11   0.0015   0.0030   0.0015   0.0024  +0.0009     4,915,901
06/02/11   0.0014   0.0020   0.0014   0.0015  +0.0004       965,333
06/01/11   0.0010   0.0011   0.0009   0.0011  +0.0003     2,091,689

And the chart:

Disclaimer: No position and no compensation.

Among the hot stocks and nice charts to look at for today is Cooper Holding Corp (Pinksheets: SHAR – News) and North Bay Resources Inc. (OTCBB: NBRI – News). Cooper (SHAR) has been in an up-trend for the last month and has developed quite an enthusiastic following on the message boards and across social media platforms, especially Twitter.

North Bay Resources Inc. (OTCBB: NBRI) had a nice breakout on Friday. This stock has continually hit the scan and now it certainly has a reason to be on there.

Another interesting stock on the chart is ACTC (Advanced Cell Technology) which released news on Friday:

Advanced Cell Technology To Webcast 2011 Annual Stockholder’s Meeting To be Held on Thursday, June 9th

Personally I think it is great that a BB company is having a shareholder meeting; so few companies in the micro caps do this…

Disclaimer: No position or compensation.

It is easy enough to point to the news yesterday that CopyTele, Inc. (OTCBB: COPY) entered into two license agreements with AU Optronics Corp. (NYSE:AUO) of Hsinchu, Taiwan to produce and market CopyTele’s E-Paper® and Nano Display technologies. That is the obvious reason the stock was up 60% to close at .40 on volume of nearly a million shares.

However, if you look at the chart, something was cooking well before this news came out:

Since late March, COPY has been moving up in a stair-step pattern then leveled out around the .20 area. Last Friday, the stock closed at the high of the day, .25 on slightly above average daily volume. Then, of course, the news came out yesterday and off the stock went.

Bottom line is the chart almost always foretells the future. Want to improve your trading? Learn some basic Technical Analysis… It will make you a lot of money!

Disclaimer: No position or compensation.