In this video, we're going to be talking about the top five penny stocks that will be spiking in September 2019. Now the reason that I could say this confidently and undeniably is because the companies on this list literally tell you the exact dates at which price changing events will occur. They do this through giving us their official FDA approval dates Fage crowd data releases as well as dropping many hits and clues such as with insider trading activity. But I do of course want to go ahead and warn you, penny stocks are not for the faint of heart.

A lot of people like to play this little game where they hold it, hope they buy in here and then they just sort of wait and then all of a sudden they sell out here in a panic. My suggestion with these stocks is to always have a plan. We do not guess on whether or not a stock is going to get approved or is going to have a positive reaction, but rather we wait for a technical confirmation. We wait till the price action backs us up.

The fact of the matter is that if you are planning to randomly buy and hold, you're going to have a bad time anyways. The only thing I ask of you in return for all of the work that goes into this video is that you hit that ravishing like button. And also if you do see value in this video, don't forget to subscribe for more short, sweet and simplified videos on how to trade the stock market. Ok so to start if you are wondering what platform to trade these stocks on, my suggested broker is Weeble.

They have Commission free trades and all of the tools that we need to be successful as traders. And of course if you sign up with our link below, you will get a free stock just for doing so. And it's also a great way to support the channel while also trying out a great free broker. Okay so the first player in the game is AR D s Now AR DX will have their Putra aka FDA decision for their drug for cough, the patient predominant irritable bowel syndrome on September 12th.

This is great news because if it gets approved, not only will we have the price action to trade off of in September but will no longer have to rely on Chipotle to solve our constipation issues. But what does the price action show? We only care about new catalysts as it relates to the price action. So the first thing we look for when we open a potential news catalyst chart is previous signs of spike ability, essentially areas in the price action where we saw rapid movement that we can trace back and see what happened and boom on March 7th we saw the price action run up like an inflamed banshee and upon digging we hit on March 7th. This was the day that a RDX reported publication of success for their Phase 3 trial results for 10 open or which if you remember correctly, this is the same drug on schedule for FDA approval on September 12.

Not only that, but this same drug is going through the FDA approval process for multiple treatments, and thus the approval of it for each use makes it more likely that it'll be approved for other uses as well if it makes it through these phase trials successfully. But anyways, going back to the price action, we now know that a RDX has a previous pattern of spiking massively on these catalyst events, causing an overreaction upwards and then subsequently going back down. This is very common of any news catalyst, but it is especially so in the penny stock niche. But the reason that this is important is because now we know that the drug on the FDA approval schedule can open or has a history of causing price action run ups on big news events and this FDA approval is going to be the biggest news event yet for the drug we are currently trading at 236 and that would mean even conservatively to the previous run up on phase trial data release that we'd have upward potential from 236 to 409, which gives us 173 of upward potential to 0, 76 of downward potential on the bottom and two long-term lows.

Okay, so what about the insider buys aka our wonderful Honey Badgers? What are they doing? Well, We love insider advice because we know that no one knows the interworkings of a company more than the insiders inside. While insiders very rarely understand how fundamentals relate to price action, they do understand the fundamentals as they get to work day to day with the drugs and are obviously going to have a better understanding of whether or not something is heading towards approval. They can't say for certain because they're not the ones giving the approval and obviously they want an approval. but they have an idea of whether or not this is a shitshow or not.

And we call them Honey Badgers because these insiders won't. They badger for honey and lead us to it. And what is it that we've seen me Honey Badgers doing? Are they buying shares? Are they selling chairs? Well, consider this. In the last 12 months, we saw 115,000 shares being purchased, of which a hundred and fourteen thousand of them were bought in just the last three months.

Now, what has happened in the last three months, you might ask? Well, they're drug Tena Penor has progressed through phase trials and is now on the ballot for approval at the FDA. So in the last three months we've seen it run up. as insiders expect a positive approval. So with all of this info aside, I will say that the FDA can be a wild beast.

And since there is a fine line between trading penny stocks and degenerative gambling, my strategy for biotech penny stocks has always been to form A hypothesis and wait for the price action to back it up. Say, we are predicting that the FDA will approve 10 apin or based on the research presented and based on of course, your own due diligence. We can then set up a plan that says when my hypothesis that it is going to be confirmed is confirmed at a run-up of price action, then I'll buy in Again, you form a hypothesis and then you only execute on that hypothesis when the price action backs you up and then when it is confirmed and it makes sense to form an entry point, then you form an entry point. Or you could even set trade alerts that alert you during certain signs of an uptrend, on the days leading up to or on the announcement itself.

And of course, with these penny stocks, the less time that you're in the position, the better. But make sure to get in at a technical confirmation, and ideally when we are close or below fair value Entry day on the RSI. Now, X-ers is not technically a penny stock as the IRS defines penny stocks as any stocks traded under $5 but it's for sure within spitting distance and could easily go back under the 5 range. But X-ers is another news.

FDA approval ploy and it will have its decision on September 10th. Now X-ers is food for date was extended by three months to work out issues just like Wild Aunt Jenny It has issues and since they had an FDA approval delay, we can go back and see what happened how the stock price reacted to it. Do you kind of get an idea of how it will react in the future and a quick Google search tells us this happened on June 6th. So let's take a look at the price action on June 6 to see what happened upon notification of the extension.

Well, it got beat down like a rabid dog and thus it meets our spike ability requirement for overreactions. If it over reacts upon bad news, it is also going to overreact upon good news. But what is it that I mean by overreact? Well, if this extension news was actually harmful to the long-term value of the company, it would have gotten beaten down much like it did, but then it wouldn't have ran up completely and complete be recovered within a few weeks afterwards. Overreactions Our emotional jolts from investors and if this is prone to overreaction.

Zon bad news for drugs, it will be prone to overreaction. Zon good news for drugs as well, but it almost doesn't matter. You see now, we have a pattern of rapid over selling and that means if we have bad news, we'll likely be able to profit off the over selling by buying in at a discount. And I think this is what a lot of folks miss when it comes to these place.

They think the only way to make money is if the news is positive, but it is actually easier to play a stock that gets beaten down massively upon a negative catalyst my name today. discount is a lot more simple than catching a reversal upwards. but in any case, let's go ahead and check out what these smart money is saying. As retail traders, we simply do not have the resources or the brainpower that hedge funds and institutional investors have to investigate these thoughts.

So for example, several large hedge funds have increased their shares in X-ers Dvn Guard Group Blackrock as well as a few small pharma investment groups now Blackrock in particular, is very exposed to the biotech sector, and you'll see them in a lot of the more solid plays within the niche. A vote of confidence from Blackrock is at least one large elevating factor for us. But what are the monkey / analysts saying? Well, the monkeys are reiterated. Insane Priced Targets As always.

Missy Who is giving a price target at $27 Ma? Royal Bank of Canada has given a price target at $18.00 And the funny thing is that analysts love to recommend stocks that their institution isn't even investing in, but rather just promoting. They don't put their money where their mouth is, but they expect you to. But in any case, to put in perspective how insane the price targets are, remember we are trading at eleven dollars and forty-five cents, so an average price targeted over $20 is mind-boggling But hey, that's what you get from the monkeys. And I have found foreign analyst banks to be a little bit more sporadic in terms of how they value American companies.

And that doesn't mean they're necessarily wrong, it's just something that I found in all fairness to the Bank of Canada I. Just have a hunch that this Bank in particular would be better off valuing something like maple syrup. Okay, now a CH V will be presenting their Phase 2b data on conference from September 12th or the 14th. Now it's been a while since I've entered stay presentation in these videos, but we love phase data presentations because it's an opportunity.

It's an opportunity for companies to brag about their positive phase results and often spin it in a way that entices new investors in gears up financial media attention. Now why is it that I'd spend time of this video introducing a presentation when I could be just talking about FDA approvals that are huge catalysts? Well, because a Chv has provided beautiful news, catalyst driven price action to trade off of this chart simply tears me apart with inspiration and the humble idealism of a winter gnome in the summertime. So let's go back and see what preempted these run ups. The first spike upward was on February 22nd on the first positive sign for their drug.

This is when they announced positive data for their phase trials 1 & 2. It ran up like an inflamed banshee and they got beat down because again, these catalysts caused over reactions. The actual adjustment and value before the announcement to after was paltry compared to the run-up, but it was an upward adjustment overall, so that is good speaks to the value. March 14th is when they held earnings and hosted a conference call with investors explaining long-term profitability and guidance on their drug line, And this presentation They spoke about the completion of enrollment in their trial, presented new positive final trial data, initiated a new trial, and explained that they had just closed their offering and gone and gotten a pediatric waiver.

This caused the price action to run up and caused an overreaction, but then again, it settled to a paltry sum, but still higher overall. but everything changed On June 11th we broke into a downtrend below or a long-term directional as the main line has a negative news catalyst broke on this data. Now what happened? Well, this was the date that the company announced significant improvement in effectiveness of the drug in three out of four arms of the study. Now, even though it was effective in three arms, investors are prone to panic selling.

If anything goes amiss, they see that part of the study didn't work out and they all of a sudden immediately drop all hope. They rush to sell the house, the cars, the kids, the wife, Grandma, grandpa, whatever they can get their hands on and this is irrationality of the Stock Market 101 and was summed up nicely by the analysts. So at Landon Burg they explained how they believe that the sell-off is driven by news stories that mentioned the study met the primary endpoint in three out of the four arms. They go on to explain that investors don't understand the difference between patient-reported rates and CEO level reductions, and basically this is quite common.

Most chief investors invest based on what they read and what they see and it's all surface level stuff and most don't understand what is actually going on below. But in any case, the analyst slash monkeys were wrong and this overreaction was only an overreaction in the short term. After getting beat down like a jackrabbit, it reversed, they slides bit, but then continued its downtrend. So this was actually a sustained change of direction below or long-term SMA Line Now, why is this important? Well, because of this break of direction, we've been discounted to 183.

This is a stock that essentially received tons of stock appreciation since mid-february based solely on the viability of Cytosine, and now completely wiped out that value we are back to before they started racking up successes and speculation in terms of price action. So the question that is going to be answered at this presentation is how the company's going to be moving forward with a drug that met three out of four of its primary endpoints. It is an opportunity for a CHP to show investors if they are still in the game and that this drug is still valuable. And for those of you who love to see analyst figures, the two analysts pooled in tip rakes are giving it an average of a 13 dollar price target, which is a reasonable 612 percent of upside.

I Really don't know why I spend video time talking about analyst opinions sometimes I Really wonder why anyone listens to the analysts, but this is another smart money back to play. In fact, a CH V is 80% owned by institutions and the top five include again our favorite Blackrock and Vanguard funds. Okay, now LX Rx pour LX Rx has just not been having a good time. It recently got beat down and what? I've seen to be one of the least overreacted breakdowns ever.

I Have always said that every reaction in the stock market is an overreaction and LX Rx is the closest thing I've seen to proving me wrong. It got beat down rapidly and then barely had any adjustments before continuing to sell off. This is one of the reasons that I always say don't buy sick dogs on the side the road. If you had bought just because it got beat down you, you would have been left holding the doggie bag.

We need to see a confirmation of an uptrend before buying into Sick Dogs Signs of recovery folks. But LX Rx did have good reason for the breakdown. On July 26th, they announced their plan to terminate their agreement following insufficient in the phase three trials. But LX Rx has a chance to redeem itself when its presenting new data on September 16th through the 20th.

This will give them an opportunity to shoot some life into the death pit that is their stock price. And because it's so lifeless, any sort of good news could provide some upside. We are so low compared to the previous value of the stock and I'd say we found a pretty consistent bottom at around 135. but worst case scenario, low at 113.

So we have some serious upside to very little downside. Ok, the fifth penny stock is LP TX & LP TX will be updating their phase 2 data on September 20th. Well, frankly, LP TX is volume starved. They're in the middle of the desert with nobody around them.

We've had some great periods of volume, but in the last few weeks and quite frankly, since February investors have been avoiding this like a jackrabbit avoids a jackhammer. and why wouldn't they? This is a pathetic company that's been heading down over all, but a drive of volume could change everything. Last time, we had a massive drive, a volume aligned with a catalyst. We saw a run up from 195 to 366.

So there's our spike ability factor now. I'm going to be looking for some building of directional strength and a conformation intraday. We always want to buy in when the price action is moving in our favor. If we're moving against the price action, that's a deprecating factor.

now. just as a bonus: RH HBY will have their FDA decision on September 2nd for their SPL A for their lung cancer drug. This isn't a penny stock I just want to include it so that you have it on your watchlist when September 2nd rolls around being a larger cap stock. This does not have the same sort of spike ability factors that we like to see in the smaller caps.

but the reason I'm recommending it is that we have an FDA approval plus a consistent up trending pattern. We love up trending patterns overall because that allows us to buy into they push back and then simply sell out while leveraging our gains. Okay folks, well I hope this video is helpful if you have any questions. feel free to reach out to us below or join our free zip trader circle Facebook Group I Also post nightly watchlist.

The Facebook group and a lot of the other members of the group post what they're watching and what they're trading as well and it's a very helpful place. If you're wondering how I find these dates, all you have to do is go to Biopharma Catalyst Comm and search for the dates and there's a bunch of different dates for FDA approvals. and there's also terminology if you're having a hard time figuring out the terminology. but all the informations they have for free is very good and very useful so make sure to check them out anyways.

folks have a great day and I'll see you in the next video.