Good afternoon everybody. Stocks are mixed on the day with virtually no economic data to speak of. Yet, the major indexes still continue to exercise a fair amount of volatility. Gold, certain treasuries, China and REITs are all leading the way about halfway through the trading day, so it appears the markets are opting for a little conservatism right now. The S&P 500 continues its series of lower highs and lower lows. But, today's reversal back to the upside following a weak move earlier in the session is challenging that recent trading pattern. Everyone continues to think stocks are going to selloff soon, however, all of us here at SCN are in agreement the markets are going to have to prove they're ready to move lower before we'll be convinced the Trump Rally is over for a while. It's really not a matter of fundamentals these days, as much as it's about the charts, so we figured we'd spend a little time today trying to help everyone make better decisions when it comes to buying penny stocks, or any stock for that matter. As John Monroe over at Elite Opportunity Pro always likes to say, "stocks go up and stocks go down, so you might as well try to buy low and sell high". That's pretty obvious, but it doesn't always mean it's easy. It is pretty easy for him, but not for the large majority of investors who don't even know how to read a chart in the first place. You see, there's always an inherent underlying fundamental landscape to a stock that will ultimately drive its performance on a long-term basis. It's chart on more of a short-term basis though is always going to be subject to supply and demand issues for a number of various reasons. Let's quickly start with that underlying fundamental reason first. Most penny stocks that fail end up failing for a few very basic reasons, and some not so easy to comprehend reasons. The two most basic reasons are: management never ends up actually growing the business the way they communicate, or management made some very bad decisions when it comes to how they financed their company. The not so basic reasons run the gamut. Take a few of our previously suggested penny stock failures to date in Sack Lunch Productions, Inc. (SAKL) and Cardinal Resources, Inc. (CDNL). Sack Lunch Productions, Inc. (SAKL) appears to be doing just fine, but it was our assumption the company was in the process of becoming fully reporting to the SEC - bad assumption on our part. Although we anticipated getting an early jump on the company for our readers back in May of last year, the stock has continued to run into more and more selling pressure. However, since the company still hasn't made that leap of faith to fully reporting status with the SEC, how on earth can we possbily assess their financials with any sort of reliability? Therein lies one type of problem for some penny stocks. Cardinal Resources, Inc. (CDNL) has been nothing short of a disaster, of which it's our opinion the company has not only failed to grow as a business, management also did some pretty toxic financings that ended up doing the company in. Again, the company could potentially turn itself around at some point - but up to now they've failed on every front, and they've done it in spades. The saddest part of all of it is their technology seems amazing. The reality is there's always going to be failures in the stock market and there's always going to be blockbuster winners. There's even going to be what you thought were failures that actually end up turning into big winners. You just have to make sure your big winners make up for the losers - and one way to do that is to employ some charting into your tool bag. Not only will it reduce your risk, it can also position yourself properly in the idea. You will hear us say all of the time - the best time to buy a penny stock is when nobody wants it and the best time to sell it is when everybody wants it. Remember that rule, because it's going to end up ringing true way more than it doesn't. There's always going to be exceptions to the rule, but rules were made for a reason. Let's now have a look at a few charts. The first one that comes to mind is Azincourt Uranium Inc. (OTCBB: AZURF) (TSE: AAZ.V). Yesterday after the close, the company announced that, further to its news release dated March 28, 2017, it has completed the acquisition of an option to acquire an undivided seventy per cent (70%) interest in the East Preston Project located in the highly prospective western Athabasca basin (the "East Preston Project"). Go here to read the press release in its entirety: https://finance.yahoo.com/news/azincourt-uranium-closes-option-agreement-173421310.html. Although that is good news, the news isn't the reason for today's chart observation though. The daily chart here shows you the stock has pulled back about 40% from its initial move that started back in October. This is extremely normal activity for any stock. It doesn't matter if it's a penny stock or a mega cap stock like Apple (AAPL). As a matter of fact, you can be certain at some point every stock is going to pull back anywhere from about 35% to as much as 60% before it might resume its previous trend. That's an awful lot of returns being given up if you're not willing to exercise some patience! Take a few more here in SPYR, Inc. (OTCBB: SPYR) and Vitality Biopharma, Inc. (VBIO) - only this time it's their weekly charts. These are even more powerful! See how they've both pulled back anywhere from 35% to 60%? Folks, this is normal. It happens all of the time. In my opinion, all three of these will move much higher at some point in the future, because that's just what stocks do. They move up and they move down. The only time to be concerned about the possibility of them never moving up again is if the company is failing at all or some of what I said earlier in today's newsletter. So what's the exercise today? If a stock has already made a big run, wait for a pullback - anywhere from about 35% to about 60%. The latter won't always be the case, so you've got to just use your best judgement. However, if there is one thing I've learned over the years it's that stocks usually always pullback - no matter what stock it is. Remember how Apple (AAPL) was a high flyer way back in the day, and then went to sleep for years and years before finally making the biggest run of its life from 2003 to now? Do yourself a favor - go back and look at a monthly chart of AAPL before 2003 and you'll see exactly what I mean. Then look at what it's done since. And by the way, also remember what I said when it comes to penny stocks. Buy them when nobody wants them and sell them when everyone wants them. There's a good chance you'll make more money in them than most. Before we call it a day, let me suggest one more big piece of advice - decide in advance how much you're willing to lose if a stock goes the wrong way on you. Then stick with it. Is that 10%, 20% or 30% in an idea? That's up to you, but make darn sure you determine that well in advance of buying any stock - no matter what it is.