Hello folks! So in this video, we are going to be talking about the top three stocks for this week in mid-january 2020 and then I give you strategies to professionally but violently exploit them. But the way that entry points work is, you have to look at every single position that you're about to take from a probability standpoint. Why? Why do you need to do that? Charlie? Well, simply because we trade like spoiled brats Some people say Charlie you're just too picky. but I'm not going to apologize for trading like a spoiled brat and my picks lately have revolved heavily around overreaction plays we love / reactions.

For example: BBB Y from our nightly zip trader Circle Watchlist got beat down on bad news and since every reaction in the stock market is a dirty overreaction, it had some periods of recovering and some of our other opportunities revolve around specific catalysts such as FDA approvals or positive drug related news such as ITC I that we announced in our Top Penny Stocks video a day before the run-up. But again, every reaction is an overreaction, so eventually it's going to correct. You are going to need to put in the work and have a clear plan if you're going to take advantage of these opportunities. As you know, there are no free lunches within the stock market pick setups that make sense.

And if they don't make sense, cross your arms, cross your arms and spin around and say no, I'm a spoiled brat and I won't trade this. But anyways, folks, the only thing that I ask of you in return for this. video is that you hit that ravishing mic button. Okay and quick plug.

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Okay, so let's go ahead and start with six. Now this is Six Flags in the place where you pay $500 to wait in line and get spun around for entertainment. Well, the price got be down on negative revenue Xbox tations and fear of cutting their dividend. Now as you know, companies that offer dividends operate at the risk of not being able to pay out their dividends to their shareholders in the event of a downturn.

But why do we care? Charlie Well, we know that every reaction within the stock market is an overreaction. That means once we've finished, the overreaction will hit overreaction lows and start showing some signs of price strength recovery. This beatdown took us from oversold and now increasing and that's a huge elevating factor, but the issue is whether or not this overreaction is finished. As nice as it would be for six to just continue this run-up and for it to be a clean correction, the market simply does not care about what we want.

Thus, we need to see clear holding of price ranked over our SMA line at Open before being convinced to take a position. As of right now, this looks promising, but if it breaks below, we'll wait and take an entry point when we once again have a clean confirmation over our blue price break Besame line. Remember folks, you want to be above the blue price break. That's the main line because that means we have positive price strength and that's why we wait for that first green candlestick for us to have confirmation.

One of the things that I don't like about Si X is that this sell-off was technically part of an already downward Direction stock. and that's a deprecating factor. The best overreact in place, have neutral or bullish price action before head, but this was selling off for several months before being in a downward direction. Below this red directional SMA line is financial constipation.

Constipation is always a deprecating factor. On the other hand, Yes, yes, we do have a slight pattern of going from oversold to overbought in the last few months, which does create this previous pattern conformation of sorts now that we are once again oversold, What all of this combines to tell us is that we need to focus on getting a good deal and stacking strong elevating factors. If we do want to take a profitable position this week, remember, since this is a downward direction, it's doubly important for you to sell out at validation. We always ride from confirmation to validation.

You're not going to grab all over the move if you wait for confirmation and you sell out at validation. but that's fine because we're playing for the long run. We don't care about the short run, folks. By the way, if you are having a hard time meeting your goals, it's probably because you're being too ambitious with your goals.

Set the bar lower. This may sound the opposite of empowering, but trust me folks, one of the biggest ways to get discouraged is to set a really high bar and then not get anywhere near it. The best goals are the ones that are reasonably attainable. This is not to say that you shouldn't have an ambitious vision, but there's a difference between vision and goals.

Goals should be each stepping stone towards your vision. A vision should be stopping that's wildly ambitious and get you motivated. A goal should be something that you can meet in the near term. For example, I Always use videos with the $100 per day threshold where I'm like okay, you can make $100 per day doing XYZ and then you can scale up your efforts, but people comment and they're like, hey, that's pathetic why would you make $100 per day just get a regular job But it's people who focus on hitting these small goals that end up consistently scaling up and hitting bigger goals.

Short-term goals should be reasonably attainable in the near future so that you can feel empowered to keep using those as stepping stones to get to your vision. Okay, rant over next. SP Wh now SP WH Got beat down like a winter gnome in the summertime. Life is really just a game of gnomes.

but SP WH had an excellent time towards the end of last year after breaking into an upper direction around August that just consistently helped that and continued running up Fantstico folks until BAM January 9th it breaks into a downward direction and test to see if it'll eventually reject it. Now this is of course, on a news release that the company is expecting 17 to 21 cents of earnings per share instead of widely expected 30 cents per share of earnings Firstworldproblems, folks. But I call this the Amazon phenomenon because you have a company that has very solid expectations and they're doing really well. But because they're doing so well, the analysts slash monkeys overhype it and then they give them too high of expectations.

So even though the company's doing really well, they just override the expectations and that overrides the share price. And that creates this sort of weird dichotomy where all I can do is fail to meet these massive expectations even though it's doing really well. So while SP WH continues to have impressive growth in terms of making money, it still got beat down. We did hit overreaction lows at 562, when to over stalled an increase in, and are now trading after an initial correction.

The question now though is will we continue to see a price strength or will we see a off overreactions? We never really know how long the overreaction is going to take and how long the subsequent Corrections going to be. So that means that we have to wait for the price action to prove to us and convince us to take a position. Okay, and for you overreaction junkies, I'm going to give you a bonus overreaction opportunity to watch. Shout out to Austin from Zip Trader you who called this out but Pete Ela was a top loser from Friday and we love top losers.

It got beat down on lower than expected revenue over sold to overreaction lows, and then provided some price strength opportunities and appreciation volume decreases followed upward sentiment throughout Friday And we did see a partial correction from 13 5 to 14 7. And this is really another reason why you need to be on the ground floor of scanning for these opportunities each and every single day. or at least be in one of our Zip trader communities so that you can follow these opportunities. But we still have Heather upward potential from 14-7 to pre overreaction beat down at $24 Now, contrary to popular opinion, upward potential is not where the stock will go, but rather the road at which the price action can drive on.

But you need driving factors: what's going to elevate the price action up on that road? In this case, Upward Volume Sentiment Upward Sentiment volume is one of the strongest signs of pushing price action. Now a few dangers though that I do want to talk about with PTA and this is one of the reasons that I introduced it. When it comes to a lot of these news catalysts, heavy companies, lawsuits tend to be quite common as there's a lot of potential to abuse PR to hurt or help investors. Because if you have the power to drastically change to the share price by just putting out a piece of PR all of a sudden, you have these law firms and lawyers coming after you saying that you're misusing PR and abusing investors.

But the thing to keep in mind with this is that the legitimacy of each lawsuit doesn't really matter in the short run. In fact, it's almost irrelevant because justice and the stock market isn't in the courtroom. it's public opinion. The more attention these lawsuits get, the more the public gets scared and the more of downward pressure we have on the stock price.

This is a deprecating factor because it creates uncertainty. As always, you need to have a concrete exit plan, Folks, you can't just randomly buy and hold and you always have this risk that a bad piece of DS is going to come out and derail your position. That means also setting clear price alerts. Okay, last but not least, NK TR Now I'm not the biggest advocate for buying stocks that have recently run up massively, but Nectar has provided an insane run-up and let me tell you why.

It's worth watching for entry points. It ran up on news that Bristol-myers has deepened its deal on treatment of their cancer drug, their triple Drug combo. This is essentially a play where we have a vicar established company backing up a small company and now these are beautiful opportunities. The reason we like this is because morphing the interests of these two companies means that now investors are seeing Nectar as a more solid bet amongst the recent scrutiny of misleading investors.

We love companies that recently had bad news because that undervalues the position, because every reaction is an overreaction and then now has good news because that also creates an overreaction when we can then buy in at a good deal and then sell out when it's no longer a good deal. but it has already run up quite a bit. and if you look at the long-term chart, you can see the significance of this move. It's brought us all the way in to an upward direction.

And I know what you're thinking: This is overbought. This is overextended. Why are you recommending it? Well, over buying is a huge deprecating factor and so is the massive amount of downward potential here. But hear me out.

I Want to see one of two things: We want to see a push back that allows us to get in at a fair deal if we consider this run-up was an overreaction. If it does correct, that could still provide a good entry point. Secondly, if that doesn't happen and we just continue to see the strong priced right, That's also a win because all of a sudden we can scan pre market and ride any sort of priced ranked that market open. But of course a downward correction without signs of recovery would make my spoiled brat senses tingle and keep me out of a position.

So you have to understand what's in the cards and what is at stake in every single position that you take. So when it comes to Nectar, you're prepared to take advantage of any opportunity and if necessary, to avoid it completely. Remember folks, we don't just buy stocks because they've been beaten down, but we wait for signs of a recovery. So if Nectar sells off, we don't just buy in because it's sold off.

We wait for signs of a recovery. Would you buy a dead dog on the side of the street? I Wouldn't Okay folks. Well I do hope that this video is helpful. If you have any questions whatsoever, feel free to reach out to me.

In the comment section below, you can also join Zip Trader Circle link below as well. We post Miley watch lists and a plethora of other resources on there. If you'd like extra helped in growing your account and would like to work with me and other traders each and every single day. you can also join us at Zip Trader You which is our course.

Make sure to look through everything it is that we offer to find out whether or not it is a good fit for you. Additionally, if you are wondering what broker to trade these stocks on I Always recommend Weeble to new beginners and they are offering two free stocks for anybody who does Sign up using our link in the description below. so if that is something that you're interested in, the link is there anyways. I Appreciate you watching this video.

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