In this video, we're going to be talking about the top stocks through this week, but I do want to remind you that the goal with these videos is not for you just to see a bunch of random stocks than to randomly buy it, but rather to present you with a bunch of different opportunities that you can then go and form a plan on what needs to happen in order for you to take a position and what needs to happen in order for you to exit a position. Unfortunately, too many people look at having a plan. It's sort of like creating a magical wish list. This stock market is not a magical fairy that will grant you your wishes every time you make one.

But my point is always have a plan when trading me stops and anyways the only thing that I asked of you in return for this ravish full video yes that is a new word is that you hit that ravishing like button. Also a quick plug If you are looking for a commission free broker to trade these stocks on Wiebel is a great option and of course signing up with our link below is both a great way to support the channel and also to get a free stock and also to try out a great platform so make sure to give it a look. Ok so to start I do want to review Kpt Eyes FDA approval KPT I ran up from six to Nine Twenty Six and then to Ten Eighty Seven after hours on July 3rd after an FDA approval decision in their favor and back on June 20th. This was the first ticker I called out on my Top Penny Stocks video.

Not because I'm special though you may have been fooled by that elegant facial expression, but it was because the company literally identified this as an upcoming event. A lot of traders fall into this mantra that you should only care about the price action, but if you focus solely on price action on all of these plays, you won't understand what it is that is actually moving these stocks. When it comes to FDA approval plays and other news driven plays, we were often made aware of events ahead of time in the situation we were. It's a catalyst.

It was an FDA approval. For example, Kpti had a specific date at which FDA approval was either going to be approved or denied or sometimes they get postponed. But we usually see warning signs before that happens. But understanding when a catalyst is going to occur allows us to set alerts ahead of time and allows us to have this sort of on our watch list.

And if it wasn't for understanding and keeping track of big news catalyst plays, we wouldn't be made aware of stocks like Kpti until after the price action moved. So this is why it's so important to keep. I can understand exactly what catalysts are coming out and what is going on and meet a lot of these sectors especially Biotech. And with Kpti the news catalyst ended up happening a couple days earlier, right? so the exact date wasn't true.

But because we knew about this ahead of time, we're able to set an alert and be some of the first traders to know when something actually moves. Do not fall into the pattern of random reinforcement where all of a sudden you buy into a correct pick him and you think all picks are correct. These picks are just opportunities for you to trade off the price action, but you need to have a plan when trading these thoughts. Okay, so what that being said? ITC I will have their phase data release for two of their studies being done on their drugs effectiveness for treating Bipolar Depression.

The media is already picking this one up with Bloomberg saying that the share price could double now I Always love these sorts of predictions, especially when they are accompanied by no technical analysis whatsoever. Basically what they are saying is hey, this looks like a good catalyst that can get people reading our article. how can we make a good title to get people to click it? Oh, let's say it's going to double. Fabulous.

But obviously this is just my opinion. I Love analysts, but the analysts that they are quoting the same that each study should add about seven dollars to the share price. So I guess that's how they came up with the doubling title. I guess if you add both of them together, seven plus seven, fourteen and the analysts the same that on the downside, chairs would only fall two dollars if the data was mixed and would fall six dollars in the field.

So what they're trying to say is the upside of them being past is is better than the downside of the not being passed or being mixed. I Don't put much value in their technical analysis and their predictions on stock prices, but I do value their sales figures because this is an industry where they actually can see the demand curve. They are predicting sales in the range of 500 million for Bipolar and 400 million for Schizophrenia, and other analysts are predicting a 60% chance of hitting at least one of the primary endpoints. So what this tells me as a trader is that the only thing relatively certain to happen this week is that ITC I will have massive movement in one direction or the other, And for that, we're going to need to be prepared in terms of price action.

ITC I has been prone to over selling and returning to fair value for the last like five months, and it tends to be prone to bubbles of upward direction. Right now, we are holding our upper direction over our long term red SMA line. So what I'm going to be looking for today is quite simply holding above our directional SMA line and a pry strength confirmation over our short-term SMA line. a boost of volume in tree day along with price action indications can allow us to play this: if the phase data is indeed perceived as good, doesn't have to be good, just need to be perceived as good.

If it is perceived as bad, we can profit off the overreaction. The market loves emotion, but the key is planning specific entry points where you have more elevating factors as compared to deprecating ones. For example, buying in at below fair value would boost your odds of success while minimizing your downside as ITC I has a long history of recovering to fair value, and with the phase data releases, we could see a large run of price, strength or weakness to take advantage of this week. But the interesting thing is that if we do see the catalyst pushed us past previous support or previous resistance, we could easily see the amplification effect of folks buying into higher highs and shorting lower loves that, something that can be quite common with a lot of these consistent support and resistance level place.

The psychology of that is that if a stock has held a certain level of support and failed to break below it for several periods where it got close to it, then once it breaks below, people are like oh my God. this is going to crash because people are over emotional and it creates a self-fulfilling prophecy in the short term. This doesn't always happen, but it tends to happen. Ok, so you guys I haven't spoken about you guys are DJs for quite a while, but it is a popular beverage in.

DTF For a lot of our new traders and other stock youtubers in the niche, we just broke into an uptrending direction on the 3rd and have since built some massive directional strength over our red directional SMA line. Again, if you're unfamiliar with this channel, the red directional SMA line that measures price direction. We like to trade above that because that means it's up trendy. I'm a huge fan into buying I'm a huge fan of buying into both directional and price strength.

Price strength is the strength above our blue SMA line and leveraged Etfs can be quite fun. You gas tends to have good volume pre-market and often times simply binding upon confirmation and then riding me. Price action up and over our blue price strength as the main line allows us to take a profit at the first validation point and a lot of people get mad when I Talk about buying into confirmation and selling at validation I Think it's because it sounds so simple that it can't be true. It's sort of like when someone tells you, hey, all you need to do to be successful in the market is to buy low and sell high.

It's like yes, but there's more to it, right? That's just one factor. you should look at, a confirmation and a validation point as sort of a question mark. It's at that point where you're like, hey, does it make sense for me to enter or exit the position here based on my other factors. If the answer is yes, then you make execution.

Confirmation point is also great for confirming something that you already think. For example, if your hypothesis is oh, this is a catalyst to play when you see a confirmation perhaps of both price strength and directional strengths. They knew like, okay, I'm confirmed and taking a position here. And because you're buying into price strikes the odds of you succeeding or higher.

Okay, so now gold has been trending up for a little while. But what I found interesting is that we are starting to see more and more days where it's just this clean upward direction over our directional SMA line. And having a pattern of clean price direction makes it so much easier to focus on figuring out where are the best entry point is because it's going up overall so say you mess up something. Boom, it's fine.

Okay, so I do want to cover. Oh Azzam Now oh, Azzam ran up like an inflamed banshee on Friday on news that they had done an agreement fulfilling early financing obligations which will reduce all Azam's liabilities and increase its equity and liquidity. Now, the stock market being the rational hub of investor sentiment that it is, reacted appropriately by jumping up triple digits for previous periods. Now with these types of plays, the pump-and-dump label gets thrown around a lot, but it's also a combination of short sellers rushing to cover their position and what is known as none other than the infamous short squeeze when a small cap stock starts rising in an unjustified way and sometimes large cap stocks as well.

Short sellers tend to rush in and bet that it is overextended, and the higher it goes, the more short sellers are betting against it. But if the price action keeps going up, short sellers start getting nervous. You're like Oh. More and more investors are tempted to buy into the euphoria as it seems to never stop increasing.

but this is where it gets interesting. At a certain point, short sellers decide that it's not that you hold the short position and they start covering their shares. But what covering means is that they're buying back their shares and when they buy back the shares in mass, this starts pushing the price action up faster, which in turn brings in more investors. As the price continues higher and as the price continues exponentially higher, more shorts rush to cover their position.

It's really a beautiful process with the stock price exponentially going up and eventually runs out of steam and goes back down. But short squeezes aren't something that you can really predict ahead of time based on price action alone. but Oh Adam did provide entry point confirmation, so just using technical indicators and using concrete entry points and exit points, you could have profited off this short squeeze. We had an entry point confirmation and we also had the ability just to simply hold and tell.

validation. Finding upon confirmation and selling out add validation would have meant that while you did miss perhaps a majority of the run-up you still would have profited from a confirmation entry at 186 to 239 while also having a reasonable level of protection. The reason we think of it as protection is because if you have your above the SMA line then you can look at it and measure the strengths of both the direction and of the price strength by looking at the distance and the real estate between the two. That means when it starts closing in, you could start being like oh, I'm starting to get squeezed and then you can sell out at early warning signs of a reversal or you could wait until your validation point to evaluate your deprecating factors.

When you get the validation, you could ask yourself, hey, okay, look, I'm overbought on the RSI Does it make sense to exit out of the position now and if it does, then you can exit out anyways. I Hope this video was helpful I Wish you all the best of luck trading this week. If you need more help, following these picks and following what's happening in the market, my suggestion is to join our free Facebook group zip Trader circle. The link is in the description below.

what else? We also have a discord chat which I'll also put the link for in the description below. We've been having some problems with the discord link, so if you're having a problem with it, just comment below and I'll send you a new link anyways. Thanks for tuning in, have a good day and I'll see you in the next video.