Why the penny stocks can't sustain any meaningful rally recently?

1. Market talk is that total contra losses for traders and retailers since August is about $200m.
2. Many accounts are still suspended, waiting for contra losses to be settled.
3. Many margin accounts’ value has dropped more than 30-50%.
4. Loss of confidence in the market to sustain any rise; either staying out of the market completely or trading at very much smaller sizes.
5. Many drivers are also hurt, and having to resort to rolling over their positions.
6. Many people are on holiday.

Conclusion is penny stock market is very dry now - no liquidity.