May 21, 2021 (Penny Stocks via COMTEX) -- Is It Time To Buy Penny Stocks After This Week's Dip?
Looking for penny stocks to buy right now? If you said "yes," you're not alone. In fact, retail traders have seemingly been frothing at the mouth to find a sustainable trend in small-cap stocks lately. Last week finished strong with expectations that lower-priced stocks would gain some much-needed follow through. However, as I'm sure many of you saw, this wasn't the case earlier this week.
In fact, not only did broader markets drop, so did small-caps. Look at the Russell 2000 Small-Cap ETF ( NYSE: IWM ) and the S&P Small-Cap ETF ( NYSE: IJR ). The IWM dropped as much as 2.6%, while the IJR slid by around 1%. In the grand scheme of things, this isn't an earth-shattering pullback. Nor would I consider this anything remotely resembling a "correction."
What I will say is that it was a gut check for some retail traders. Whether you're calling them Reddit or Robinhood traders - maybe you've got your own definition of retail market participants - the idea that "stonks only go up" has been a pressure point for novice traders this year.
Are Reddit Penny Stocks The Only Thing To Watch?
Thanks to the pandemic, millions of newbies flooded the market, looking for exposure to what may have been the only money-making opportunity to take advantage of early last year. Fast-forward to this year, and most "stonks" have certainly just gone straight up, recovering hundreds and even thousands of percentage points at times.
What helped fuel the fire was the strong social sentiment originating from places like Reddit and Twitter. Who can forget the rise of GameStop ( NYSE: GME ) earlier this year? With that, however, has come more risks thanks to hype playing a short-lived role in 1 or 2-day breakouts.
Learning how to day trade has become even more important. Are all penny stocks on Reddit bad? No, but it's important to do more than just read a post, then immediately buy penny stocks because of that post.
Now that reopening has begun, people are reentering the workforce, and fundamentals have begun to play a role. Meanwhile, more volatility has become prevalent in the stock market today. This means that things may not follow the rosey bullish trend we've come to find over the last 14 months.
In fact, I think that we clearly see that unfolding this month. The gap up and gap down from the day-to-day timeframe is enough to make the most experienced trader a little seasick. Nevertheless, there's plenty of money to be made. Where someone is selling, someone else is buying, and in between, one of them is turning a profit.
Best Penny Stocks To Buy Right Now?
Jaguar Health Inc. ( NASDAQ: JAGX )
Cyclerion Therapeutics Inc. ( NASDAQ: CYCN )
Kaixin Auto Holdings ( NASDAQ: KXIN )
Jaguar Health Inc. is a penny stock that we've covered numerous times in the past few months. And, shares of the biotech company moved up by around 7% on Friday, May 21st. While no major news was announced today, the company did provide an update from its Cancer-related Diarrhea abstracts submitted to the ASCO June 2021 Annual Meeting.
Now, it's hard to imagine why this would result in such a large spike in value, but this is often the case with biotech penny stocks . Because they are more volatile than most, any news no matter how big or small the announcement may be.
For some context, Jaguar is a commercial-stage pharmaceutical company working on developing plant-based, non-opioid prescription medicines for GI disorders. These medicines are also sustainably derived which is a big part of Jaguar's mission.
In addition, its wholly-owned subsidiary, Napo Pharmaceuticals Inc. works on producing and commercializing proprietary plant-based GI pharmaceuticals as well. Its main product, known as Mytesi, is one of the only plant-based, FDA-approved products for the symptomatic relief of non-infectious diarrhea.