With the overall uncertainty in the market, it makes sense to focus on news and volatility driven plays. So today we're going to be talking about the top two stocks this week, both being news catalyst plays because the beauty the beauty of these plays, is that the overall direction of the market can become quite irrelevant. I Would even go so far as to say that they could actually bring in more investors and more volume to the opportunities because in an uncertain environment people are deprived of good opportunities. But I do want to warn you I Always see people who do this little thing called holding and hoping I understand that a lot of people tend to get very excited when they see that the price action goes up.

They think oh, this is going up it will never stop going up I could just hold this and then if I hold this until next Tuesday I'll become a billionaire They figure why would I sell out when it's making money. This clouds their judgment and then unfortunately they miss all the early warning signs of a reversal. So please, please, please, please always have a plan when you're trading these stocks. Having a plan means having a specific entry point as well as a specific exit point.

But in any case, one of the most important parts of having a plan is to hit that beautiful and ravishing like button. And also don't forget to subscribe if you see value in the following video. And of course, this charming video is brought to you by the folks over at Weeble if you're having a hard time figuring out which broker to choose to trade these stocks, I Highly recommend! Weibo It's a completely commission-free broker. Beautiful platform, great for beginners and honestly might as well give it a shot because they do offer you two free stocks if you sign up with our affiliate link below.

Okay, so with that being said, let's go ahead and start with CLD X CLD X Just released their phase 2 data on Saturday and from what we can tell, it's looking positive, but they do seem to be holding back a bit to paraphrase their quote. They said the data is early and indicates a lot of potential. I Don't think that their phase data results indicate that it's going to be the next best thing since barking Chickens, but it is likely to be taken as positive. and it's important to note that the last time we saw a less significant indication of potential, it resulted in an increase of over one dollar a share.

I'll get back to that in a minute, but the question is whether or not this phase data release is going to be strong enough to spur investor interest in this overall beaten-down stalk. CL DX Of course, has that spike ability factor that we love that shows a previous pattern of spiking massively on these events and then continuing to get deep down like a rabid dog. So with that being said, I do want to point your attention to some of CLD exes later price action spikes to give you a better idea of what move CL DX and what we can learn from that now CL DX has several areas where we see rapid price action on the day and the reason that we noticed these spikes in the first place is because they are going against the overall downtrend. That means that for that moment where they went up, they have something powering them to push them up against the massive downward direction, but not enough to allow them to stay there.

Pushing against an aggressive sell-off is actually quite hard because investors see that it's selling off, and to me, the event that causes this is almost always fundamental. It's always almost due to some sort of news catalyst, and this is a common occurrence that you can catch in a lot of different stocks and just by looking at the chart, you can kind of infer that it's a niche driven play. News driven catalysts tend to have a run up or run down and then fade pattern. So however, the price action reacts to a piece of news, it tends to fade back to where it was before and fade back into the trend.

So just looking at this, you could already identify that when I see this pattern I Naturally want to dig deeper and figure out what is driving it so that we can see if there is something that we could take away from this to allow us to predict another occurrence in the future. Now, the first notable one doesn't involve much digging. It is obviously earnings related as we see it happened the day after. We had the little earnings icon which displays that we had an earnings released that day.

Nothing surprising here. earnings actually looks like a loss. My guess is they had a lower loss than expected and I actually believe that they also had like a sales increase, but don't quote me on that. But this day, which was the 8th of April, we saw not only an unprecedented run-up for this particular day, but also a massive increase in volume.

Comparing this to the earnings date, we see that yes, the earnings, they did have an increase in volume, but comparatively speaking, if you compare the two, it was nothing probably within one standard deviation of the average. Where's this one? This is. clearly this is clearly a break of average and this is an important thing to recognize because this quick break of trend along with much higher than average volume would be an indication to me that there was likely a strong news catalyst that we can go back and trace and of I went ahead and did that and this day was actually the market opening after the company provided a corporate update. but most importantly, an update on CDX which not so coincidentally, is the very same drug that they just had their phase day to release on Saturday.

Now, this is quite beautiful because it allows us to connect this previous catalyst with our potential new one, the phase data release, and also measure the amount of investor interest in the drug. Does the drug bring in a lot of investor interest as the volume spike? Whatever what not. This sort of gives us a previous pattern to kind of predict what's going to happen in the future. So a better way to say this is that now we know that significant news events regarding CDX 1 139 tend to be volume driving events with investors generally bullish, and this doesn't necessarily mean they're going to remain bullish.

The important thing to understand is that not only are these CDX 1 1, 3, 9 news dates volume driven events, but it appears that any news event in general tends to be a positive experience for the share price. And I'm not saying that just because of these two dates, if you look back at the other increases, you'll find similar press releases as well. So here's a company that is consistently smelling off with this ugly, ugly downward direction. but it seems that any and every press release serves to push the stock price up.

But of course these don't hold because they are emotional reactions to news catalysts. As we know, these events are almost always over reactions and generally keep the overall trend of a stock after blowing over. Well, my favorite part, and this is actually quite beautiful. Quite beautiful.

We could actually trace back and see that investors picked up on this pattern where any sort of news released by the company tends to temporarily cause a positive run-up and since they identified this as a positive catalyst for the stock, they effectively triggered a run-up before the actual earnings. The last earnings they came out, they actually triggered the run-up before. Because they had already picked up on this pattern, they knew that regardless of what happened, it was likely to run up. so they bought in before trying to take advantage of it.

But because it had already factored in the run-up, the pattern was actually pushed back and then it sold off like it always does. Because of the fact that uses an overreaction, it just sped up the process. But the important thing to know is that we saw this acknowledging of the news catalyst pattern, which effectively left the pattern to speed up since people took advantage of it beforehand and take a moment to compare this to the previous earnings. If you a hard time understanding what I'm saying, both earnings were fundamentally expected losses, and both were, in actuality losses, but one ran up before the announcement and the other the other ran up after the announcement.

Now you may say, but Charlie if this is a pattern, if this is a fundamental pattern that traders acknowledge, why is it that the stock price did not run up on market close on Friday in the afternoon since everyone knew the phase data was going to be released on this Saturday Why didn't he want him to run up before an anticipation? Well, there's two different explanations for this, but my argument would be that the previous pattern of running up before news events was based on traders and investors identifying the then previous pattern of running up after news events. But since the last run up was before the news event, that meant that we no longer have a complete previous pattern of running up after news events since the last one had already factored in the news event beforehand. And if these individuals were to say Buy in before an anticipated run up before the news event, they would have been met with price weakness. and that is why we didn't have a run up.

Any potential run up would have been throughout it. But the key here is that while the pattern may have been broken, the underlying driver of the original pattern investors following fundamental news events rather than price action patterns that remains the same. That's still there. It is just the price action traders themselves who didn't participate beforehand in a meaningful way, and thus we are now returning to a four.

We broke the pattern and taking this a step further, we now have an actually positive piece of news. Again, our phase data release as a catalyst. So before we had news events that were just generally positive catalysts because they brought more volume to the stock and for some reason people generally saw that as optimistic. but in terms of words and in terms of announcements, they just weren't as strong of a catalyst as an actual positive phase data releases.

So we now have an actually positive piece of news Again, our phase data release as a catalyst. That means that the pattern of over buying and increasing on these events is unlikely to break and I would say is likely to happen again and would likely be better this time since we actually have a piece of good news. But I do of course want to explain and give a little bit of a disclaimer that identifying a pattern such as this one doesn't serve as the be-all and end-all of having a profitable position. It's just one small part.

Patterns are broken all the time. I Like to say that patterns are for identifying positions, not taking positions. You don't want to take a position just because it has a pattern of running up. Again, patterns are for identifying positions, not taking positions.

You want to identify the opportunity because of the pattern and then use your risk management, your understanding of price strength over the SMA line, and of course a confirmation of an uptrend in order to take a position. And it's important to know this, because quite frankly, even if you do everything perfectly and by the books, you're likely to still have a percentage of the timer, you will fail. And it is in those situations where you're going to need to make sure that you're cutting losses appropriately so that in the long run you can remain consistent. If I was to buy blindly into stocks that have a history of running up on news events, I may get lucky, but that wouldn't help me with consistency in the long run.

So I remind you to use a combination of tools and most importantly, always have a plan. With these thoughts Now I'm probably going a little overboard on CL DX but let me give you a little bit more information. We've seen this massive sell-off since mid January after the company's reverse stock split, which is quite common after a reverse stock split, but this chart is post split. If we were looking at the chart before the splint, we would have seen it trading it around 30 cents, but this still leaves us with technical upward potential from 304 to 1162.

But because of the split, we'll call the effective the effective upward potential at its correction highs at 897 and downward potential is pretty good. Long-term downward potential seems to be at around 255, which means that we now have five dollars and ninety three cents of upward potential. or effective upward potential to forty nine cents of downward potential So if we do see early warning signs of a reversal as well as price strength propped up by this positive phase data release, this could be a beautiful play. by the way, a lot of folks have been asking me how to keep up with all these plays because there's a lot of plays going on and I don't always make these videos.

Well, one of the simplest ways to do that is to join Zip Trader Circle. this is our free Facebook group. There are dozens of posts every single day with the latest and greatest news events as well as different strategies to take to the market. And of course if you have any questions regarding those, you can just post on there and tons of people will see your post and you'll get some of the best answers if you comment a question on there and a lot of times all you answer the questions personally.

Okay, great next. Now with predicted volatility in the market comes Vixx. Vixx becomes a very lucrative opportunity. Now, Vixx isn't technically a stock per se, and I understand that a lot of folks get frustrated with me when I include these on my top stocks list, so I'll include an extra stock at the end to make up for it.

But Vixx allows us a beautiful opportunity to make money off the volatility in the S&P 500. and in an oversimplified explanation: it doesn't track the market like an ETF such as SP Y does, but rather it tracks the price of options. And because a major part of options pricing or predictions on how volatile the S&P will be between now and the options expiration date, it allows us opportunities when the market is moving with heightened volatility. We've had a consistent run-up offering a lot of opportunities to ride the strength over the SMA line, and it also often displays a bit of a comeback pattern where we see that every time if we had bought in when it was oversold, we could have simply helped until it was overbought and made a profit.

Of course, patterns can break, so we'll want to make sure that we have a pattern confirmation and always be on the lookout for exit points. You need to buy any confirmation and then sell out head validation. Ok, so Z Up will be releasing their phase 1 data. Z Up has been on a very solid uptrend for much of the year, not much impacted by the overall trend of the market.

That's a good thing to see now. I'd say the biggest issue with this and I believe I covered this in the video of my Top Penny Stocks video from a few weeks ago is that this Rodham means that the share price may have already factored in the future success of the company, and when the future successes come out, they may end up being non-starters because it's already been factored in previously. But in any case, the Up will be releasing their phase 1 data on the day or at least this video and it's likely to provide price action that we need to trade off of come market open on Monday and throughout the week we saw a huge boost of volume and closed and are likely to see similar interest in the market on. Monday The strategy that I personally employ with this is making sure to wait until we do see a solid reversal of direction on our long-term SMA and a confirmation on our short-term SMA Remember it makes sense to buy in upon price strength instead of just buying in when it's a sick dog anyways.

I Hope this video is helpful for you if you have any questions. Do not hesitate to reach to us on the zip trader circle Facebook group or comment below. We also have a training tutorials playlist which is a great opportunity for folks to sort of learn from the ground up. Anyways, have a great day folks and I'll see you in the next video.