This business included some tasty gains in midday trading. Penny stocks traders were cheered by the wholesome profits of pink sheets stocks such as Nova Energy (NVAE:OTCBB) at 41.67%, and iBioPharma, Inc. ( IBPM:OTCBB) at 37.93%.

Seasoned penny stock investors know that, even in tough market conditions, penny stocks and cheap stocks have the potential to surprise you. The turnaround of the once-toxic assets of Credit Suisse is a classic example of how cheap stocks can become a profit-making opportunity.

As you may remember, Credit Suisse used a huge chuck of its toxic assets as 2009 bonuses. These were assets that had become severely devalued as a result of the overall semi-collapse of the global markets. Needless to say, these stocks were selling for pennies on the dollar What most people think of as “penny stocks”), making them (so Credit Suisse thought) “worthless”.

Fast-forward a few months… the same “penny stocks” have increased in value – and this pig of toxic assets is looking very much like a Princess of Profit.

It just goes to show that, while mainstream Wall Street may scorn penny stocks, low-priced stocks often offer some amazing opportunities for sharp, aggressive investors.

Rewards – and riches – usually go to the bold. Seeking the highest return on a portfolio, instead of settling for less, is an approach favored by those willing to look realistically at a profit opportunity and act with determination.

At the end of this trading week, Wall Street will have a lot of people who lost money, some who barely broke even, and a few who managed modest gains. Meanwhile, out of sight, penny stock investors will be quietly banking 30% gains and more.

Which group would you rather be in? If you prefer to be in the group that avoids market hype, grabs the best penny stocks to buy, and carves their own destiny, you need to subscribe to our penny stock newsletter right now.

Consumers are gun-shy as gas prices rose, even as oil prices stopped short of $80 a barrel. Commodities are always sensitive to supply and demand influences, so we can probably expect to see mainstream oil stocks fall. It’s not particularly surprising that the market is particularly cautious around these volatile energy prices.

In this scenario, it makes sense for traders in penny stocks to look at the cheap stocks available on the OTCBB and Pink Sheets Stock Exchange. Serious penny stock traders can find some of the best penny stocks to buy in the Penny Pic newsletter. (Subscribe to this amazing FREE resource and get immediate access to the best penny stocks to buy right now.)

Meanwhile, the Conference Board reported its Consumer Confidence Index for February fell much more than expected. Naturally, this news didn’t help stocks or energy commodities, which dropped following the report.

Oil prices rose for more than two weeks as a steady series of reports suggested that manufacturing, home building and other pillars of the American economy were improving. But the high unemployment numbers in the U.S. have barely shifted, and if a slump in consumer confidence continues, it may foreshadow another summer in which Americans cut back on travel and hospitality-related buying.

The news wasn’t all bad, though. In an encouraging sign, the dollar moved higher against the euro today. This is good news because crude is traded in dollars, so it becomes less expensive when the dollar rises. In turn, this forces investors holding other currencies like the euro to pay more for the same amount of oil.

With so much uncertainty, it makes sense for investors to be cautious about where they place their bets. And it makes even more sense to try to squeeze the most return out of every investment dollar.

This means that, in this “best of times/worst of times” type scenario, smart investors are looking towards micro-cap stocks and penny stocks to produce the most potential. These investors know carefully chosen investments in micro-cap stocks and penny stocks can yield substantial gains, while protecting the bulk of their nest egg.

Click this link to get the profit-making information about the best penny stocks to buy right now!

Pfizer Inc led a broad decline in several healthcare sectors, falling 1.6 percent to $18.75. The world’s biggest drug maker said quarterly earnings missed estimates and forecast profits fell below expectations.

This was a disappointing day for investors. Ryder tumbled 8.7 percent to $34.08, and C.H. Robinson fell 6.2 percent to $53.90. In all, the Dow Jones transportation average lost 1.3 percent.

In a separate report, the Institute for Supply Management said its service sector index rose to 50.5 in January from a downwardly revised 49.8 in December. This was lower than economists expected, with an increase to 51.0 versus the originally reported 50.1 for the previous month. A reading above 50 indicates growth in the sector.

Treasury prices dipped, raising the yield on the 10-year note to 3.70% from Tuesday’s 3.63%.
The price of a barrel of oil slipped 30 cents to $76.93 U.S. Gold prices fell six dollars to $1,112 U.S.

All in all, after a two-day rally, the Dow closed down 26.30 points to 10,270.55. The S&P 500 index slid 6.04 points to 1,097.28. The Nasdaq composite regained 0.85 points to 2,190.91.

In a tiny ray of hope, a report by ADP Employer Services showed the pace of U.S. job losses in the private sector slowed in January. Private employment fell by 22,000 jobs in January, less than economists’ expectation for a decrease of 30,000 jobs. Employers surveyed reported the smallest payroll decline in nearly two years.

Everyone is watching closely for the government jobs report due Friday, which is expected to show continued improvement in U.S. employment.

Meanwhile, over in the Penny Stocks market…

Budget Center Inc. (OTC BB: BDGN) was a top penny stock yesterday. This made it one of the strongest penny stocks of the day, closing up over 31% on trading volume of 21,518 shares.

Last month, investors in the major markets had more jitters than a virgin groom on his wedding night. And it seemed that nothing could soothe them. Good news was met with skepticism, while bad news was treated with borderline hysteria.

Even a recovery high of 1150.45 on Jan. 19 failed to turn things around. The end result was that the S&P 500 slid steadily to an aggregate loss of 1.6%.  However, the new month may be a harbinger of a new attitude.

Today’s early indicators are that the market may be trying to make up some lost ground. The retail index is still down but the energy sector got a nice boost from Exxon Mobil’s better-than- expected earnings report. Expect to see some overflow of goodwill to other energy sectors, including energy-related penny stocks. On the OTCBB, Rainchief Energy Inc (OTCBB: RCFEF) saw a nice 105% jump, while Geneva Resources (OTCBB: GVRS) is looking with 100% increase from last week .

Overall, things looked promising as the midday trading tickers showed the Dow +106.10 at 10173.43, Nasdaq +19.79 at 2167.43, S&P +12.58 at 1086.45.

Still, this is an important week in the market, with another heavy slate of earnings reports and a slew of economic releases set unfold. So it may be too early to make sweeping assumptions. Investors can’t go wrong by looking for the best value for their dollar, particularly in the penny stock market.

The biggest driver is the presumption that the market is due for a bounce following the large losses of late.

The most important release of the week will be the January employment report, which hits the wires Friday at 8:30 a.m. ET.  This will give another snapshot of the overall health of the economic conditions. Earlier today, the Personal Income and Spending report for December was released, and the results were mixed. Personal income rose 0.4% (consensus +0.3%) (after an upwardly revised 0.5% gain in November )while personal spending jumped 0.2% (after an upwardly revised 0.7% increase in November).

In the meantime, penny stock and micro-cap investors (or, for that matter, anyone looking for cheap stocks to buy) should keep a close watch on the OTCBB, where some very interesting gains are being made today. Strong sectors include diversified metals and miners; steel; gold; home furnishings; oil and gas drillers; oil and gas explorers; investment banks; casinos and gaming.

Happy hunting!

Obviously the major indexes have suffered some damage. Investors remain uncertain, and the Dow Jones and NASDAQ markets continue to hunker down. Disappointing reports on unemployment and lack of any real private sector growth have investors spooked about any sort of economic recovery.

So, the question is, “Where do we go from here?”

Well, while the big indexes are nursing their bruises, over on the OTCBB, penny stock investors are skipping down a profitable Yellow Brick Road. Unico, Inc. (OTCBB: UNCO) is up again (25%), and Cytta Corp. (OTCBB: CYCA) enjoyed a healthy 40% bounce in midday trading.

And, perhaps to counteract the prevailing doom and gloom of the economic news cycle, penny stocks traders are flocking to newcomer Camelot Entertainment Group, Inc (OTCBB: CMGR). Anybody got some popcorn?

Maybe penny stock investors are natural-born optimists, or maybe they just love a bargain in cheap stocks. Or maybe they’re just made of stronger stuff than the average bear. Whatever the reason, the penny stock market is humming along nicely.

This makes sense, because, in treacherous times, who in their right mind would overpay for assets? It makes sense to look for low-priced stocks, particularly the ones with promise for the future.

This is the perfect time for investors to use a short-term strategic trading approach, while remaining mindful of market volatility. Regardless of the long-term implications and prognostications of any of the Washington pooh-bahs, smart penny stock investors know where to find gold among the economic muck. And that means cheap, value-laden stocks with potential.

Did you already subscribe to our free newsletter? If not, you should. Each newsletter includes a detailed analysis of promising new micro-cap and penny stocks to help our subscribers create clear-cut short term and mid-term, easy to follow trading strategies and target levels. 

Most analysts expect the Fed to keep rates pretty much where they are now – at historic lows. Even so, the market will be examining every nuance of the Fed’s assessment of the economy for clues as to when the Fed will begin to reduce its support of the financial system.

Additionally, traders across the globe will be tuning in for President Obama’s primetime State of the Union Address. The President is expected to expand on his plans to tighten up on the American banking system.

Meanwhile, the housing market remains weak. Sales of new homes dropped 7.6% in December, bringing new worries about how fast the economy is really recovering. And in midday trading, the Dow Jones industrial average fell 19.12, or 0.2 percent, to 10,175.17. Standard & Poor’s 500 index fell 2.10, or 0.2 percent, to 1,090.07, while the NASDAQ composite index rose 1.36, or less than 0.1 percent, to 2,205.09.

In contrast to Wall Street’s jitters, the penny stock market remains steady, with many stocks holding firm, and some showing some breakaway power.

The major markets were badly rattled by President Obama’s announced intent to restrict the trading activities of major financial institutions. The uncertainty that Fed chairman Ben Bernanke may not be reconfirmed for a second term, has not helped. In response, stocks have fallen in five of the last seven days, showing just how gun-shy investors on the major exchanges are.

But penny stocks are still delivering for investors. The energy and mining sectors remain strong with good penny stocks to buy. For example, in midday trading, Unico, Inc (OTCBB: UNCO) was up 25% and Bonanza Oil and Gas (OTCBB: BGOI) was up 36.32% even on relatively light trading volume.