Today we are going to be talking about the top five penny stocks that will be spiking in July 2019. The reason that I could say this confidently is because the companies on this list literally tell you the exact date at which price changing events will occur. They do this through of course releasing FDA approval dates, face trial data releases, as well as dropping many hits and clues to lead us the right conclusion. But let me tell you, these are not stocks to just dabble in.

Penny stocks, especially of the biotech variety, are simply not for the faint of heart. The rapid movements in the sector mean that you're going to really need to be on your A-game That means having a plan you don't just buy and then randomly hold. You need to have a concrete entry point in a concrete exit point. And that means that you're going to need to be doing some of your own due diligence.

But the purpose of this video is to kind of help you get started on that process, but do not just buy based on my recommendations. But anyways, before we get into it, if you would like to trade the stocks on this list in a commission free and hassle-free way, my recommendation is Weevil and it's actually better than free because if you sign up with our link below, you will get a free stock for signing up and depositing with them. But of course you do know that a lot of work goes into these videos and the only thing that I really ask of you is that you hit that beautiful and ravishing like button and also subscribe if you see value in the following video. Okay, so Kpt I will have their FDA approval decision on the 6th of July This is for their drug from Myeloma.

Now this drug, if approved, will directly compete with Pharma giant ambient drug which is known as cry Oppel As' And the reason this is very interesting is because there's quite a bit of debacle between Amgen and Kpti. There was an alleged orchestration by former managers of Amgen to run off and make a competing product using Amgen's very own trade secrets and sales tactics and some of the same sales people will talk about that more in a second though. So in figuring out the potential market for Kay PTI's new drug, it makes sense to go ahead and look for the main competitor. I Dug into the numbers and found Amgen's PowerPoint presentations from Q3 of 2018 and pulled some revenue numbers for the competing drug and why Apple is brought in 200.

Two million dollars in revenue for Q3 of 2018. Now this might not sound like a lot of money or even look like a lot of money when looking at this balance sheet for big ol' Damn Jim But for our biotech play Kpti, this is a huge deal. In fact, the entire revenue for Kpti for the entire year of 2018 was only thirty million dollars and that is across the entire company as a reminder cry: Opelousas Revenue under engine for just one quarter, one quarter was two hundred, Thirty Two million dollars. So you can clearly see how Kpti entering in as a new direct competitor could substantially increase its revenue and thus create some insane potential for the stock, even if it only takes ten percent of the market segment.

Now that's the upside. Let's go more into how to play this. We love FDA place because FDA winners such as SC YX and ADM A from my previous videos provide price action for us to trade off of quite beautiful price action. And we love FTA losers because they also provide beautiful price action that allows us to either take an overreaction position or a managed short position.

And as we know Final Stage or Pood four stage drugs have about an 80% approval rate based on previous years in previous rates released by the FDA. So we like to see drugs in the stage because it means that we have at least one big probability in our favor. But FDA approvals also serve as quite a beautiful catalyst for small cat plays such as this one. But anyways, this FDA approval was planned for earlier, but was then extended due to the committee wanting to wait until we receive data from their Boston trial.

This month, we started seeing press releases and new coverage in the media regarding the effectiveness of the Strug. I Love this. It's volume driving news. the headlines vary, but in general the theme is best portrayed by this quote.

The drug has been found to induce a response in a subset of patients. This is what you see often in the biotech industry, and it's sort of like this casual, somewhat effectiveness that is generally a lot easier to show then, say, a high effective rate. But it doesn't really matter because as long as it's effective in a subset of patients and it also has safety features, then it's a potentially lucrative drug for the company because just just because it's effective in the subset of patients, it it's more effective than competing drugs. Or if it's the same amount of effective then oftentimes the FDA will deem it worthy to approve.

and oftentimes doctors will prescribe it even if doctors know that it will only treat a quarter of people. because that's the best solution out there. 100% of people may still have to order it even though only 25% of people have success with it. but you know they get money for all 100% of people.

Once it's bought, you don't really get paid based on the effective issue, just get paid based on how many it sells. So here we have a drug that is at worst, somewhat effective and also has a reasonable standard for patient safety. It's about to undergo its decision on again, the six, and it has essentially one competitor in a segment with a huge amount of demand as evidenced by the massive amount of revenue that I portrayed earlier. Now, what makes this even more interesting is that a ton of the board over at Kpt I came from a mgn like I said earlier AMG and had this little debacle where there was a mass exodus of its salespeople.

But leading up to this, Kpti slowly picked off its top performers in quite a devious way. This manager slowly hired the top performers at Amgen and hired them for top spots, prepping them for the release of the drug that is now potentially about to be approved and will directly compete with Amgen. This shows how fierce and interesting the biotech industry is, but in any case, what this means to us is that now we have opportunity. Now that we've identified a potential catalyst, we can then move over to the technicals and plot out a plan of action.

So Kpti got massively beat down upon delay of selling mixers FDA approval back in February and has been slowly gaining back its steam as we get closer to FDA approval. Now we have now broken into our upward direction over our long term asset main line which isn't super common amongst these small cap biotech plays, but it is of course something that we like to see because buying in in upon an upward direction is another thing pushing the odds of success in our favor. you we want as many things pushing the odds of success in our favor. because at the end of the day trading and especially Biotech trading is all an odds game.

Be more odds we have for success, be more likely we'll come out on top. But of course even if there's a 10% auto failure, we still could be in that 10% So we have to be consistent over the long run and aim to have profit over the long run. But in any case, strictly technical upward potential would put us back to before where the drug got delayed. This makes sense if this was the evaluation before the drug got delayed.

It would make sense that if the drug got approved, that we'd cover. Back to that. but this is what fundamentals come into play. We know that Kpti has a functioning drug that can compete with Amgen's who brings in hundreds of millions of dollars from that drug in revenue each quarter.

Meanwhile, Kpti has taken me top salesman from Abdun that actually drove that revenue in the first place. So it's not unreasonable to say that if Kpti gets approved, we'll see Amgen lose at least some of its market share. and even just losing thirty million would mean a doubling in revenue for Kpti. And of course, that's a very conservative estimate.

So I'd say that this combined with the upward direction will give us an interesting entry point as we get closer to the FDA decision. The most important thing though, is to have a concrete plan. We don't just get in based on our hypothesis that we gathered based on the fundamentals, but rather we wait for a technical confirmation. If the technical price action does not back up once you're seeing and what you're predicting based on the fundamentals, then don't take a position.

We need to pair our hypothesis with actual clean facts. Wait for a confirmation by in upon that, and then if we see early warning signs of a reversal, then take an exit. Okay, so Cpio will have their Phase two final data between the 6th and 10th for their drug for hemophilia. The great thing about trading biotech is that even if you lose money, you can be thankful that you don't need these drugs.

Well, hopefully you don't. But anyway, Cbio has an interesting pattern where it's up. Trends tend to take place over a one to two week period and then sell off. It is also prone to over selling and at times over buying as well.

This is great. We like the pattern of over binding over selling because that means that we can buy in at a good deal and sell out when we are overbought. But moreover, we have this ability to buy in upon confirmation and simply ride the price strength up and over the SMA line. As you know, real estate, between the price action and the blue SMA line is the measure of strength.

Be farther apart, they are these stronger the price action is and make closer they are the weaker it is. This has a pattern of quite a clean run up over our Blue SMA line. but in any case, we are still trading pretty close to nearly 4 support with not too far to go down to long-term support at 6. -.

But we also have upward potential to recent resistance at $11 and $0.19 So we have nearly $4 of upward potential and a stock that has a pattern of over selling and over buying. It also has a pattern of struggling to find direction over our long term SMA line as shown repeatedly. and we have a dollar of upward potential to that extremely conservative line of resistance at the long term SMA line. So directional resistance is about a dollar up and that's a pretty good conservative point.

And while previous patterns don't guarantee future results, they do provide us with some bearings to form a plan on how to attack this stock if we do see some positive data or a positive catalyst in July. Ok, so the next one is Dov' now I had to dig a bit more to find Dov' but Deauville will have an FDA approval decision on June 30th. They already have one recent FDA approval under their belt for adopt tool M and they have another one in progress for a different use of this drug. Now, roughly how this works is that drugs tend to undergo the series of phase trials for certain applications and for the treatment of specific ailments.

and then if the drug gets approved, it usually still needs to go through another process if the company wants to use that to treat another ailment. This varies a little bit and I'm not 100% clear on some of the different discrepancies that happen with this because sometimes it doesn't have to go through all the different trials and I think that has something to do with the safety or the measured safety that they found in the first trial. But in any case, all you need to know is that it does need to go through another approval stage. In the case of Dov' stop to let drug the next application will have its FDA decision on June 30th.

But in any case, moving over to the technicals, Dov' got beat down like a rabid dog after a rough quarter and specifically due to some turnover in the Executive suite. And make no mistake, Dov' is a risky company that is losing money each quarter, but the promise of future drug profits continue to incite investors. and moreover, this beat down gives us a lot of upward potential relative to downward potential. and the monkeys are raking it at around $18 which could help draw in more interest if we do have some good news.

Okay, so BPM X will be releasing their face to data for their Rosacea drug in early 2019. Now, it really sucks that they don't give Zak dates this month. It's kind of weird. on exact dates they're kind of giving more durations and periods.

But in any case, I'll tell you a little bit more how to find these, but you may already know BPM X from their recent success with your drug for acne BP X 0 1 This had a positive phase trial release earlier this month. Nimmy Case BPM X Reported on the 22nd of May that their last patient had completed the trials plus BPM X is now analyzing the data and will report back in early July 2019. Well, how will we be able to spot which day it will come out given that they gave us a long duration? Well, last time we had a phase data release for the company, we saw a huge spike in volume or at least abnormal volume in the pre market and then a huge spike of volume at market open. Oftentimes if you do a quick volume scan at mark and open, you'll find stocks that have big catalysts, and if this is already on your list, you'll be able to spot exactly what's going on.

Taking a look at volume and movement in price can be two ways to identify a potential catalyst confirmation that will allow us to trade off of the price action. Ok, so this next one is by no means a penny stock. so I didn't include it in the number count for this video because I don't like to have misleading titles, but it is relevant in the sense that it will have an FDA decision on June 30th. Now technically speaking, retro finish trading on the lower edge.

We are still in the downward Direction underneath our read long term SMA 1 but we do see some closing in of the gap which is of course an indication of weakening of downward direction. The beauty though is that we do have what appears to be the early warning signs of a reversal with a potential catalyst to jumpstart it if the drug does get approved right in before. July The monkey slash analysts are giving it about a 76% upside and the monkeys are bullish on the stock. We also have an increase of insider buyers with more buyers in the last three months as well as in the last 12 months.

Those who know the company the most, those inside seem to be bullish on the stock and that isn't unreasonable given the current share price compared to where it was at just a few months ago. So I would say this is definitely worth watching and finding good entry points with. I would say make sure to get in at a good deal. We like to buy stocks when they're at least a little fair value, but oversold is ideal.

Okay, now the last one actually has its FDA approval decision in mid-august A ton of stock start Valley before FDA approvals and oftentimes if you can get in at a technical confirmation, you can enjoy some of the profits from these rallies. When trading these types of stocks, research is very important in being proactive. Even more so, I've always been a huge believer of the motto take care of the work and the work will take care of you And that's ever so true with these stocks. you need to put in the work and you need to take care of everything.

In terms of research and of course, being proactive. now, Calla has a few periods of clean run ups from oversold to overbought. Most notably this period where we have this clear price strength over our blue SMA line. This is our favorite because of the fact that it allows us to find great entry points simply buying into pond confirmation that first candlestick holding above the SMA line and selling out at early warning signs of a reversal.

That first candlestick breaking the SMA line would allow us to take a profit, so will clearly be on the lookout for this in July I'd love to see some really warning signs of a reversal, preferably if we can see it consistently stay in an upward direction. The interesting thing about Cala is that it's largely owned by institutions. They are also known as smart money holders. Investment institutions have access to the best resources to evaluate companies and run risk reports unless companies largely owned by pristine institutions will generally be safer bets as compared to ones that aren't.

Of course, we are going to need to see the price action Back this up before taking a position. We use the fundamentals to explain Catalysts, but it's important to use actual price action to evaluate our risk to reward ratio as well as to back up what we're thinking. anyways. I Do hope that this video was helpful for you I Wish you the best of luck trading these thoughts in July 2019.

If you want to keep up to date with all the news, I do recommend checking out the free Facebook group zip Trader Circle. The link will be in the description below. and of course, if you're wondering how I found these dates I Use the website bio form a Catalyst I'll put the link in the description below as well. Everything that you're going to need is on that site.

And of course, if you have any more questions, feel free to comment below or reach out to us. I have the Zip Trader Circle Facebook group Anyways, have a great day folks and I'll see you in the next video.