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The nearly 200-point rise in the Dow Jones today is more than meets the eye. The United States and China may have agreed on a "phase one" trade deal. But that's also set off a catalyst that could boost one of our best penny stocks to watch this week.
The world's two largest economies agreed on a "phase one" deal over the weekend. This will mean the paring-down of tariffs that had been scheduled to escalate on both sides. China suspended levees on U.S. corn and cars, and the United States called off an additional $160 billion of Chinese electronics and toys.
All the major indexes jumped on this news. In addition to the Dow's surge, the S&P 500 went up 0.7%, and the Nasdaq gained 0.8%.
It's great to know stocks are soaring at the beginning of the week. But it's not very useful to know after the fact.
Luckily, we have a system called the Money Morning Stock VQScore™ to let us know when stocks are set for a breakout. It scans the financials behind thousands of stocks and scores them from 0 to 4.9. If a stock gets a 4 or higher, it's in the "Buy Zone."
The penny stock we're talking about today has a perfect 4.9 VQScore. And it lines up perfectly with the news in China because it comes from an industry that is directly affected by this news.
There is still time to invest in this penny stock, but it could shoot up at any instant – the low share price of penny stocks translates to high and fast percentage shifts.
For example, Senmiao Technology Ltd. (NASDAQ: AIHS) rocketed 268% in November on just a $0.78 jump.
This week's top penny stock to buy trades for just $2.49, so it could see huge gains on just a few dollars of growth. Plus, it pays an incredible 8% dividend yield. Finding that kind of yield in a penny stock is unheard of.
And now that the United States and China are progressing with trade talks, this penny stock could break out very soon…