Yesterday’s market action proved to be excellent for all short-biased traders. Most of my watchlist perform very well. I traded penny stock RHIE yesterday on the short side for a small profit. You can view my trades here.

Now on to today’s penny stocks to watch…

ONTY – Personally I think this is setting up to be more of a short than a buy contrary to what some might believe. Yes it is making higher highs BUT its gotta open tommorrow at 2.88 or higher to be considered a buy. Not a favorite to play right now just because I’m not certain of a direction this penny stock could take.

SPPR – Not seeing any reason for this latest little spike. Ton of resistance at the 1.16 price line, so this could set up to be a short, but don’t expect much out of it. If you’re one of those pennystocker’s with under $25,000(Like ME) I wouldn’t waste a daytrade on this penny stock.

AIB – This is an Irish bank play that has ran from 2 to 3.49 the past couple of days on news that the Irelands government could clean up the banks with an emergency budget. Yet they haven’t announced if they’ll alleviate the hard to sell assets to clean up their balance sheets. Keep it on watch for a short as 3.60 is a stiff resistance line.

CZZ – Detailed in yesterdays hot stocks to watch. It made another strong move up today while the Latin American markets ended the day in red distinguishing this penny stock as a leader in the LA market. It actually may be more of a buy right now than a short, but see what the price action is like before you make a decision to short or buy. Watch the 4.49 price break for a short and the 4.95 break for a buy.

DIGA – No news to justify this upward strength this penny stock is displaying. It’s definitely in the overbought position with an RSI showing 87! BUT don’t count this one out as it could have another leg up. I’m looking for a short position on a green to red move.

NLS – Watch this one for a short-biased trade as I think this penny stock might have more room to fall considering there’s no support til .80, right now it’s sitting at 1.12. It broke it’s afternoon consolidation the last 5 minutes of trading so there’s a chance this could gap lower.

Last 5 posts by Justin Bostwick

• SEC Charges 8 - May 23rd, 2009
• 6 More Penny Stocks Picks: “Buy The Hype, Sell The News” - May 22nd, 2009
• Penny Stocks To Watch For Friday The 15th - May 15th, 2009
• Six Penny Stocks To Watch That Could Make You Money - May 12th, 2009
• The Framework Of An Afternoon Fade And Why It’s So Essential To Short Selling Penny Stocks - May 7th, 2009