After another kangaroo week in the stock market and a week characterized by a combination of major earnings reports both bad and good, a combination of major state shutdowns or new restrictions from California to Florida, and continued case increases, many are coming back here with one simple request: a request that ancient messengers traveled the silk road for months upon months. Weeks upon weeks and days upon days. A request that has dogged the dogs and catted the cats. And that request is to ask Charlie what just what are the top three stocks for this week? For our German speakers, that's top dry stocks for this week, For the Japanese speakers, that's top San stocks for this week.

And lastly, for those who speak Tesla or workhorse, that's top bankruptcy stocks for this week. haha. Just kidding. But in this video, we're going to be talking about the top three stocks.

But let's go ahead and review last week's picks. What happened last week? So first pick last week was Uavs. We talked about how Uavs was a hype stock that has been running up on rumors that they will partner with Amazon for drone delivery. We originally called it out on July 9th in our Top Penny Stocks video when it was trading at 159.

Then we reiterated it in last Sunday's video when it was trading at just under two dollars. and this week on hype, it ran up to highs at just under four dollars before selling off. That's a more than 100 percent increase on just rumors of an Amazon partnership. Not even a verification, just rumors.

Next we talked about Tesla. we talked about how it's running up on hype and historically all hype has ended in brief but powerful pushbacks. And this week, Tesla continued running up on hype and had a powerful push back. We'll see how brief this one is, but anyways, this was something that everyone saw coming.

So it's not like I'm saying, oh, I called out the Tesla Pushback. It could have happened a week from now, could have happened two weeks from now. But what we're saying is this is a company that has literally always behaved this way. and I'm a long-term Tesla bull.

I love Tesla, but for trading short term, it's important to understand and have a in-depth understanding of the behavior of this stock. Okay, next we talked about Yuko and Esco. Yuko goes up when oil goes up. Esco goes up when oil goes down.

Very solid run on Yuko in the beginning of the week. Pretty quiet for the rest of the week. Lastly, we talked about Bbby, Bed Bath and Beyond. I've reflected on this call out like five times in the last week.

So for those who have to hear the spiel again, well, I'm sorry, but we talked about Bbby getting beaten down on bad news and since every reaction is an overreaction, it found its bottom at 739 and then ran up to 950.. But anyways, folks, there's been a lot of controversy about my videos lately and I want to address some of the concerns. folks like to say: oh Charlie, you're so pathetic and weak for only trading good setups. If you were a great trader, you could trade any setup.

Well folks, respectfully, I will never apologize for trading like a spoiled brat. You need you need to be picky folks. you need to trade only the best battlefields. The stock market is a dirty battlefield and if you're not picking the right ones where you can win, well, you're going to be taken advantage of.

But speaking of never apologizing, the one thing that I ask you to unapologetically hit is that ravishing like button. You will never need to apologize for ravishing this. And of course, if you want to keep up to date with us, don't forget to hit that ravishing subscribe button as well. And quick plug for folks who are stumbling around and are just totally overwhelmed as to how to actually become a trader, how to actually start growing your account consistently.

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Okay, so to start, Netflix. Now, Netflix has been a huge winner throughout this crisis. In fact, it barely dipped at all even in the beginning, and it has kept a very solid upward trajectory. But this past week, Netflix reported earnings.

They had an insane second quarter. They cut marketing costs down 28, they killed production costs, added 10 million subscribers, and drove revenue up 25. And as a result, they had a 92 increase in operating income. So Netflix had a blowout earnings for the second quarter, And when you hear the media say that Netflix had a disastrous quarter, well, that's Bs.

The real reason that Netflix got beat down was because of their own guidance and forecasting. For the next quarter, they are forecasting decreased subscriber growth. Netflix is expecting subscribers to slow down rapidly because of less production and a pulled forward demand from the second quarter, and as a result, Netflix lost about 30 percent of its value from highs and 12 on the day of the reaction. But we love top losers, top losers overreact, and we already saw some overreaction correction.

We hit over reaction lows in the after hours, and if you missed the original overreaction correction, this is why you need to be following us on Twitter at Zip Charlie so you can follow our callouts on big events like this. But anyways, we overreact corrected from 450 to 490, but we are still trading 40 dollars below our pre-reaction highs and like 80 below month highs. Now looking at the chart, it looks to have stabilized quite a bit after the reaction on Friday, so I'm not really convinced that we'll get a speedy overreacting correction. But here is the thing here is where it gets interesting.

Netflix's team has always played it way too safe with earnings forecasts. since forecasts are literally just estimated predictors of a company's future, Companies have a wide range of bias when it comes to reporting their predictions. Netflix has always been full of pessimistic pulls. Literally every major earnings announcement that we've seen from them is them saying they had great earnings from the previous quarter, but then combining that with a terrible forecast for the next quarter.

In fact, the United Nations could literally mandate that every person in the world must sign up with Netflix, and the next day, Netflix would put out a forecast. Oh, but stranger things is showing less interest. That means a terrible quarter is ahead of us. Netflix is the mother of conservative earnings forecasts, and we've seen that in the behavior of the stock in the past it gets beat down on earnings and then quickly recovers again and again.

But admittedly, this time is a little bit different at the pre-reaction trading price. we were up already 60 on the year and the massive jump in subscribers in the earlier quarters could mean a lot slower growth as people get back to work and newer content gets stalled. But if previous behavior is any indicator, Netflix will soon find a clear bottom and start giving us that upward potential to take advantage of. Okay, next.

So last week we talked about how Mrna had run up massively on hype for positive news of their vaccine. Have you met my wife Vaccina But with Mrna? The world saw what happens when good news comes out on any of the phase processes for these companies. And we also talked about how Mrna was one of eight biotech companies that were working on the vaccine and receiving government funding to do so. However, another company on this list, Astrazeneca, Azn, will be announcing their update on their version of the vaccine this week.

And that's significant because again, we remember what happened when Mrna reacted to their positive results. But let me tell you why. Azn is still a different beast entirely. Azn was already a strong company.

Prior to this, they were already a huge player in the biotech industry. And that means if they win this vaccine, they have a lot of upside. But if they lose, who cares. They still have a widely profitable product line.

So this all combines together to create a win-win scenario if we have a positive announcement tomorrow. Fantastic. Tons of momentary price strength to trade off of if we have a negative announcement. Fantastic.

We get beat down past the pre-anticipatory hype, and Azn has the buoyancy to provide an intense over-reaction correction since Azn doesn't need a win, but has already started pre-factoring in one. That means we'd see a very emotional sell-off if we got bad news, but this would falter quickly as Azn is still a solid company. But the one thing that does worry me about Azn is just that: because we have seen this run away from its natural progression in anticipation of the vaccine, there's more pre-factoring in, and that means that if a positive news announcement comes out, we have less upside and more room for profit taking. Think about it if folks are buying in early hoping for good news, and then we get that big news.

Well, it wouldn't be unexpected to see them automatically grab their profits and runs, so it really depends if the announcement has the potential to put it here. Well, we've already pre-factored in most of the run, but if the announcement has the potential to pre-factor it in here, well, there's a lot more upside. so it really depends. and there's no real way to say exactly how much this can run if it does get positive news, so that's something to think about.

Okay, Lastly, now, for whatever reason, no one seems to be talking about gold right now, but that's unfortunate. now. gold usually goes up when things get uncertain because people rush into it thinking it's a safe choice. But during the beginning of the crisis, people rushed out of gold as the market crashed, and it pretty much correlated with the overall market recovery throughout the rest of the crisis.

But now that the market has been pretty stagnant, we've actually seen gold break into an upper direction and stay on a smooth trajectory upward. Now, why is that? Well, one of the things that a lot of people are talking about right now is the threat of massive inflation in the upcoming years. Of course, we all know that the government has been printing money to pay for the unprecedented amounts of stimulus and debt obligations throughout this crisis. Now, if you ask many people in the media if they are worried about inflation right now, they'd say no because recessions in modern history have been correlated with deflation, not inflation.

Because during a recession, people spend less money, wages get cut, and people are just overall willing to let go of their money at a much smaller pace. Yes, that is true, and that has been true in a sense this time around as well. The first few months of 2022 after the crisis hit, we could see that we had an annualized rate of 2.5 inflation in January 2.3 in February, and then it just started dropping rapidly. So even though the Fed was printing unprecedented amounts of money out of thin air during these months, inflation was still very, very low, right? It was still decreasing.

Here's the thing. these numbers that you were looking at is just how the U.s decides to measure inflation. It's based on the Cpi Index, which loosely uses how much prices are rising to calculate the number, but the actual level of inflation is, well, subjective based on your definition of inflation. Obviously, the government chooses the way of calculating inflation that they feel best fits their interests.

Politicians choose that based on what fits their agenda. but we the people we who actually hold the cash that's been inflated, well, we have the right to have a different definition of inflation. If your definition of inflation is how much money is being printed and how much the money supply is being expanded, well, well, those have both jumped massively. Look at the trajectory over the last 10 years and then bang, look at this jump in 2020..

let me ask you this question. If you have the same inherent value in an economy, but you have more dollars chasing that value, what does that mean for the long-term value of each dollar? That's a question that you have to ask yourself and then maybe you'd say, but Charlie, I see what you're insinuating. But like you said earlier, inflation in terms of prices of products and services and salaries are actually down well. Again, this comes back to your definition of inflation and how you choose to go about calculating it because obviously we can have an expanding money supply without seeing the effects of inflation.

Because if you choose the current price of goods and services and whatever else they like to throw into this inflation calculation and then say, oh, well, you know, restaurant prices aren't going up, salaries aren't going up, price of goods at the grocery store aren't going up. So that means no inflation. And some would say, well, maybe in the future, prices of these things will go up. But right now because people aren't spending, inflation's going down.

the rate of inflation is much less than it was before this. But again, this comes back to your definition on real inflation. How do you actually measure real inflation? Is it just the price of goods and services and salaries that the government says it is, Or is it the price of assets in regards to the dollar? Because if it's the rise in costs of assets in an economy, well, the stock market is rising. Well, precious metals are rising.

Well, home values are also rising. And how do we tell the difference between the rise in cost of these assets based on demand based on actually they're going up in value or the rise in cost based on inflation? Well, that's an open-ended question. and as the money supply increases with all the asset classes, it creates this opportunity to play off assets that are correlating upward. and my favorite way to play off this is with gold.

If you have an ever increasing amount of dollars following a stable amount of supply of gold, you get increasing gold prices. This gives us a consistent upward trend and the added demand increases. Outside of the actual value compared to the dollar, the actual demand increases and decreases give us fluctuations to trade off of on that uptrend. My way of trading these lovely fluctuations is with Jnug and Jdst.

So these leverage the movements in gold and other precious metals and provide intense opportunities on fluctuations on both sides of the move. These are the gold standard. Ha, get it, Gold standard for trading gold and other precious metals. But we play these for clean runs like Jnug's clean run on Friday, Jdst's clean run earlier in the week and all of the fluctuations in between.

Remember when gold and precious metals go up, Jnug is the bullish play and when they go down, Jdst is the bullish play. But these are day trading leveraged instruments so again, they decay and so if you are looking to swing trade gold, I would just go for something a lot more pure and not leverage like Gld. You will get less fluctuations with these, but it's still a good opportunity if you're looking to swing trade on dips. But remember folks, you have to take advantage of these when they're a good deal.

All the stocks on these lists are terrible for you if you're not trading them based on high probability setups. You know I've thought a lot about my role on this platform, and I've come to the conclusion that I can give you all the strategies, suggestions on risk, and finding opportunities that I want, but I won't be able to get through to some of you and many of you will still just gamble on plays. But I'm confident that those who go and gamble on plays and lose will eventually find their way into being more attentional with trading. I am also somebody who learns the hard way.

So if you go and you gamble on plays and you lose, well, you're going to learn from that and you're not going to do it again. Well, at least in theory some of you will probably just keep doing it. But my point is, eventually you need to commit to being intentional with your trading so you don't lose money so that you do have a long-term consistent strategy Anyways, folks, if you have any questions, feel free to reach out to us. In the comment section below, make sure to follow me at Zip Charlie.

I've been posting there quite often, so don't miss out on all the great tweets if you'd like to follow our nightly Watch list. We also have Zip Trader Circle and we have a ton of great traders in that Zip Trader Circle. So if you want to network, grow, and learn new things, Zip Trader Circle is the place for you. And lastly, if you are looking to learn how to trade, if you want to be forged into a trader, we are offering 50 off if you type in Stay Home 2020 before checkout and that link is in the description below.

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