Today we are going to be talking about the top three stocks that I see short-term valuing for May 2019. So a few things to be aware of: The stocks on this list are heavily influenced by the overall direction of the market. But the reason that I mentioned this is because with recent announcements of higher pressure tariffs on China, we are likely to see more volatility in the market and the overall direction of the market this week now. I Caution not to automatically assume that tariffs are necessarily a bad thing for short-term traders.

It's not necessarily good or bad. They objectively create opportunities for us as traders to profit off the fluctuations. But in any case, I did want to start this video off with that news just so that you have an understanding of what's going on approaching this week. And as always as I go through this list, don't automatically assume that you should buy in.

You need to always have a plan when approaching any new stock and you need to do your own due diligence. This is not a community for little boys and girls who like to hold it hope. Anyways, all I ask in return for this video is that you hit that beautiful and ravishing like button. And also don't forget to subscribe if you see value in the following video.

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But in any case, we are starting off today with Excel and X. Now this is one of the players in their race for 5g, and as one of the early 5g deployers or deployer hopefuls, it's seen it's communications business jump up about 74 percent year-over-year as well as massive revenue growth across the board. Excel and X had a beautiful, consistent uptrend practically all year before getting beat down like a rabid dog at the end of April And this was on a 34% increase in earnings per share, which is actually what the analysts were looking for. So here we have a company that is massively growing and even beat overall analyst revenue expectations.

But the stock fell because the analyst slash monkeys felt that even though the stock beat their expectations and is massively growing, that they still wanted to downgrade it for some reason now. I Understand that the monkeys feel that the stock is overvalued I might even agree with that it's gone up more than one percent in the last year. But when you look into the fundamentals and you pair fundamentals with the technicals, you get a little bit different of a picture. If the monkeys set the target price so high based on positive revenue expectations, it's strange that they would downgrade it when the companies meet those revenue expectations.

This is really the catch-22 with monkeys. A lot of people blindly follow monkeys, and they don't realize that a lot of analysts are biased towards certain sectors in certain companies, and this blatant bias always comes out into the open when you have these sort of situations. now. I should mention though, that there are a certain sectors of the company that did experience single-digit decreases.

but the overall company was massively green, and there does happen to be a lot of fundamental upward potential. so this could just be a case of monkeys being monkeys. But in any case, here, we have a solidly uptrending company that just experienced a push back. This is something that I'd consider taking a discounted swing position in upon confirmation of an uptrend this week.

and that's because we have some clear upward potential from 119 to 141 and what I see as a fundamentally strong company. The one thing to be cautious of is the massive amount of downward potential, but when it comes to trading companies with solid underlying assets and a previous pattern of an uptrend that is as strong as this one, I tend to focus more on the bullish side and take advantage of the push backs. But because there is this massive amount of downward potential, that means that if I take a position and it breaks its overreaction support at 110, I'll have to cut my losses because there's just too much downward potential for me to hold the position. That being said, if you're pairing the fundamentals with the technicals I Really, just don't think it's that like divot.

We see a rapid decrease of share price unless the overall market brings it down. Now that catalyst of a drop could be the overall market reacting to tariffs, but this could go the opposite way as well. China and US industries are competing in 5g, so this is a sector that is undoubtedly going to be affected. A lot of people ask me why as a trader I focus so much on understanding the fundamentals of what I'm trading they say, oh, if you're not investing for the long term, why do you care about what the company's doing? Well, It's simply because a lot of people look at the fundamentals and that props up the share price cuz a lot of sheep investors and other investors in the segment analyze stocks and drive up and drive down the short-term fluctuations of the share price based on what they see as fundamental fuzziness.

If other people are buying and selling based off fundamentals, then it now becomes valuable for us to understand what's going on. Just looking at the fluctuations is only half the battle. Okay, so the next one out s Law has always been a zip trader darling, but it broke our hearts when it broke past. long-term support informed me supported 2:30 Nonetheless, I am holding my resolve that even at partial recovery price at 2:55 we will see some more upside.

That being said, the best entry point was near overreaction lows not at the bottom, but rather when we saw confirmation and early warning signs of a sustained uptrend. We don't just buy stocks because they did massively beat and the reason that I mentioned this is not to provide a hindsight analysis of what you should have done, but rather to point to a possible return to these opportunities if we see another sell-off this week or in the following weeks. But I think that the most worrisome thing with Tesla is not the break-up support, but rather the downward direction in the last 180 days. But keep in mind when it comes to Tesla it's always been a good idea historically to buy in at oversold entry points and sell out at the next overbought exit point.

Of course, past results don't predict future returns, but it has so far with Tesla so we'll see if this continues, and if it doesn't we're going to have to cut our losses. Nonetheless, buying is close to oversold as possible could limit our losses. We have missed the most recent ideal entry point, but if we do see some more panicking in the future, we could very soon see another entry point. I am personally holding this for a longer-term swing position, but the fact of the matter is that if it breaks support at 2:30 then I'll have to exit.

It doesn't matter to me that I personally value the company at over 2:30 but as a trader, are not really looking for the personal valuation of the company, but rather what investors are going to make it fluctuate. - Tesla does have a history of providing great price action to trade off of, but it also has a history of keeping some folks stuck in positions I don't enjoy being locked up in positions, so when it comes to taking swing positions like this one, I'm a lot more cautious even if it has a lot of upside. If it's taking longer than average when calculated amongst the other recoveries, all usually just take my profits or cut my losses and then move on. So alternatively, we do have Neo now.

I Didn't include this on the overall count for the video because I'm not necessarily recommending it, but rather I want to introduce it and share some of my thoughts because a lot of people are curious of this one. Neo is the Chinese electric car competitor that had a massive sell-off and then general downtrend but is now showing early warnings of what could be a reversal. I Think that any fundamental approach to this company is foofy at best. The arguments with Tesla Neo and other electric car companies are usually debates on the merits of future competition in the segment as well as future progress and and widespread adoption of electric cars.

and frankly, you could make an argument in either direction. It's not our job as traders to speculate on the long-term fundamentals, but rather to figure out how we can trade off of them. Now we are seeing these early warning signs of a reversal like I mentioned and there is a lot of long term upward potential, but because of the flat price action, in the last month or so, we've seen me RSI become more sensitive to fluctuations. As a result, it's now showing us a decent amount above the fair value for the stock.

My suggestion is to make sure that we are getting a good entry point I Know this is always my suggestion, but a lot of people will buy in when a stock is overbought and just randomly hold it. You need to make sure that you have a good entry point. I Understand: If you feel that there's a lot of upward potential, that makes sense, but we do have a downward direction so you need to make sure you're protecting yourself. Last but not least, we have Gush.

now. Gush is in the below fair value segment of the RSI and seems to have hit a new level of support and is now making a reach back towards resistance. We love Gush because it has the come back King pattern of going from oversold to overbought again and again. Of course, as a reminder, we don't like to buy stocks just because they're oversold.

though we want to see signs of an uptrend as well. If we buy just because they were oversold, we will start taking positions and stocks that may or may not continue to sell off. We need to filter these out and that's why we look for signs of an uptrend Does showed early signs of an uptrend with intraday gains on Friday The key is making sure that we are getting in at both a good deal intraday as well as looking for an intraday confirmation. Do you further increase our odds of success? But I Think the beauty and I've talked about this before with gosh, it's just the fact that we do have this previous pattern of reaching support and resistance again and again.

This is by far one of my favorite setups and it's again, it's the comeback king and queen pattern if you're unfamiliar with it. I'll put a link in the description below to the video where I cover that and how to find these opportunities anyways. I Hope this video was helpful for you. If you have any questions, feel free to comment below or reach out to us on the Zipp Trader Circle Facebook group.

We also have a discord chat now that's available when you join the zipper in a circle Facebook group and you click the top link in the pin post and if you need any further help, we do have trading tutorials. All you need to do is go to the zip trailer main page, scroll down to trading tutorials and then Waha! Here you go and I tried to set it up in a way that you could start from the bottom and then work your way up and then you could just consistently do that low as if you were taking a course because this way you can learn step-by-step and then it gets a little bit more complicated with level two and you keep going on. And as you go on through the playlist, you start to learn more and it goes more into depth. We start going to strategies and criterion whatever, but the main point is that if you start at the bottom, you'll start with learning how to use the platform.

Then you'll learn about the most important indicator that we use and then when to buy stocks, when to sell stocks, etc etc. etc. We also have the Zip Trader Circle Facebook group which I just mentioned. All you have to do if you'd like to access our nightly watch lists is you just go and you join Zip Circle Facebook group and to the top every single night.

I Pin a watchlist with what I'm watching for the following day and on the weekends I even make little weekend notes for people to kind of motivate them and get them into the market Because as you know, training gains are earned and when the market is closed, when you're learning, when you're trying to figure out what everything means. Anyways, have a great day folks and good luck this week!.