Are you one of the many looking for penny stocks to buy this week? If so, you’re not alone and you certainly have your work cut out for you. Starting things off for this short holiday week is a rally in the stock market today. Broader sector trends are heating up as traders are buying the dip ahead of what could be another busy round of economic data and Fed speak this week.
Key events to keep in mind for the second half of June include plenty of FOMC members speaking Tuesday, Wednesday, and Friday with Fed Chair Jerome Powell testifying to Congress on Wednesday & Thursday. Expectations are the Fed Chair will echo the previously discussed hawkish tone. More jobs data and consumer sentiment round things out as investors weigh inflation against speculation of a recessionary period coming.
What this means for retail traders is to expect more volatility. Whether we’re talking about another bear market rally or a larger stock market crash, penny stocks have become the rising star of the day trading & swing trading arena. The main reason for this is that they tend to move irrespective of what the overall market is doing. Today we look at a handful of names trading higher after releasing big news this week.
Penny Stocks To Watch
Mullen Automotive Inc. (NASDAQ: MULN)
EV stocks are getting a nice recharge to start the week. Whether you’re looking at automakers like Tesla (NASDAQ: TSLA) or ancillary service providers like Blink Charging (NASDAQ: BLNK), the bulls are taking control early on Tuesday.
This has led to day traders seeking out cheaper stocks within the niche. Mullen Automotive has become a favored name when it comes to EV penny stocks. The company has continued reaching new milestones in 2022 including a market milestone being added to the Russell 2000 and 3000 indexes earlier this month.
Other than industry-fueled speculation and bullish sentiment, MULN stock is on the list of penny stocks to watch after another update this week. Mullen announced the extension of its senior secured. convertible note of $28 million. The note was originally set to mature next month. However, this latest extension places that 2 years out.
“This note extension with Esousa is important for us, as it preserves our cash flow at a time when the economy appears to be hitting some headwinds, and it provides the Company with a strengthened cash position, allowing us to execute on our EV plans,” said David Michery, CEO and chairman of Mullen Automotive.
In many cases, debt can quickly become a dilutive event and trigger bearish price action. Since this maturity date was extended, traders have taken this as a bullish sign for MULN stock.
CEA Industries Inc. (NASDAQ: CEAD)
Food and food ingredient stocks have been red hot this year. In the wake of high inflation, sanctions, and supply chain constraints, food prices are rapidly rising. This has…