Warren Buffett dumped all of his airline chairs. The stock market start selling off after weeks of drifting into Lala land and Gili adds drug receives emergency Fda approval. With all of these events in the forefront, we're going to be talking about the top three stocks that you need to know going into this week in May 2020. But before we do that, let's go ahead and recap last week's picks Last Sunday we talked about how SPX S essentially shorts the market.

so when the market goes down, S PX S runs up and since we are in the middle of a plague, more sell offs are, well, inevitable. Likewise, towards the end of last week, the market indeed did drop in. SPX S ran up about 20% over two days. and this is why folks, it's so important to be prepared.

We need to understand how to trade both directions. Next we talked about Zoom Z M. We talked about how soom tends to get dirty beat downs on negative publicity and then correct shortly after. And since we had a recent dirty beat down, it made sense to play the recovery.

Then that happened relatively quickly upon Monday morning open. Zoom recovered about half of the initial drop before validating out at exit. Lastly, we talked about Gilead They got beat down massively on a leaked report that their drug for the beer bug doesn't work. We the spoke about how this beat down was a reaction to the worst possible event for them and that meant that we only had upside if we did indeed get any damage control and inevitable good news.

But as it turns out, Gilead drug actually did get that good news and it was fairly effective at reducing the longevity of beer bug symptoms and thus the correction from the sober reaction took us way past where this overreaction had left us. But anyways, folks, if you're new here, you need to understand that there's a difference between trading and gambling. Trading is keeping up to date with current events, current opportunities, and then trading offset opportunities with risk management and a plan. Gambling on the other hand, is buying something just because it feels like it's the right time.

But you need to remember that the stock market. it doesn't care about your feelings. So buying in because you feel a certain way. Well, that's not a strategy if you want a friend, get a dog because this ain't no petting zoo folks.

Speaking of petting zoos, the only thing that I ask in return for this video is that you go over and that ravishing like button feel the furs of ravishing nests. Okay and quick plug for folks who are looking to learn how to trade. We are still offering $50 off that traitor you when you type in coupon code. Stay Home 2020 at checkout.

Zip Traitor You is of course our ground up guide to grow in your account and skill set. But don't be fooled, becoming a profitable trader isn't as simple as just going and buying a course. you are still going to need to put a lot of effort into learning the material and then going out and practicing it. But Zip Trader you will provide that structured roadmap so that you can do so without feeling lost.

Ok, so to start Jets! Now this is composed of the biggest airliners in the US and this is perhaps the biggest swing position that I'm personally considering. if we do get a good entry point. We love good entry points, folks because we're spoiled brats, but since there's perhaps no sector more uncertain in the airline sector and since it's constantly being bombarded with bad news such as Buffett dumping his shares, it's likely we'll see even more opportunities this week to get even better entry points in airliners. And we are already trading so much lower than we were just a few months ago.

So there's a ton of upside to not that much downside. But while tons and tons of people and of course the financial media are all liked by American Airlines or by Southwest aim of buying individual airline stock is all fun and dandy until one goes bankrupt or a bailout isn't given. And if you look back at Buffett's topping, he has started to come to the conclusion that locking up capital in an industry that perhaps can be dead for years and slow for half a decade is kind of a losing proposition if you invest tons of capital in an airline and it goes bankrupt due to years of bad demand. Your strategy of buying companies because they're just valuable doesn't really work.

and this is something that Buffett's realizing. But you see Jets J ETS is an ETF that holds all of the airliners. So instead of just going and betting on one horse, you're betting on the entire race instead of just buying. American Airlines You're buying all of the airlines.

And better yet, we as traders don't just randomly bet, but we playoff fluctuation so it doesn't really matter if the industry recovers or not. it just matters that negative publicity hurts the sector enough for us to buy it at good deal and then right the fluctuation back upward because at the end of the day, folks, there's very few investors that think the domestic airline sector as a whole is worth zero dollars. so the cheaper we can get it, the more we can profit to the massive amount of upside. But folks, I'm not proposing randomly holding these.

We don't hold an Hope here at Zip Trader, but rather what I'm proposing is getting an even better entry point. and we had here and Heatherette oversold. These are points that were great and we were oversold. But what if we could get an even better entry point? What if this sells off even more this week? Or what if it returns of that same value and then we could ride that 50 to 100% of upside like we had prior.

I'm dreaming of a white Christmas Much like the ones we knew before, much like the ones we knew before. do you think I should become a professional? Christmas Caroler let me know in the comment section below I've always worried about like the seasonality of that as a career, but I'm thinking you know, if you guys believe in me enough, hey, maybe maybe I'll just do Christmas caroling full time. Ok next with the new selling off in the market, it's time that we start profiting off fear and my favorite way of doing this is with wait for it fix see VIX hahahaha You may remember that we cult this out back on March 1st and reiterated it video after video throughout the entire run-up This is a bit of a zip trader darling, but essentially how this works is when uncertainty in the market and when volatility in the market go up. Shavax goes up.

That's why it went up so much during these first few weeks of the crisis, and that's why it is already up over 40% in the last two days as fear returns to the markets. VIX Tends to have beautiful runs and we love beautiful running, not just because that means muscle e calves, but because it's good for our account. But I do want to be clear: A lot of people think that fixed shorts the market but that's not true I Know that it's easy to get confused because she fixed tends to go up massively when the market goes down, but it doesn't short the market. What it does is it trades off volatility.

so when the future of the market looks more volatile VIX is more volatile and goes up. So that's why many traders call it the Fear index which is why it went up so much when D market was in fear and why it went down so much as the market was correcting and sort of settling over the last month and why it's running as the more it's more unsettled over the last couple days. But anyways, this was a play that we talked about back in March over and over again as this original run up it happened and I do feel a little bit weird because some of my videos are turning into this thing where I'm like oh well I called this out here I called this out here but while I did call this out, it feels a little ingenuine just because of the fact that if you're following current events, you could pretty much have guessed that this was going to be a profitable strategy to trade off volatility in the beginning of the crisis. everyone knew that implied volatility was gonna go up, so something like shakes was destined to go up, but at the same time if it was so obvious, most traders wouldn't lose money.

so I'm like, okay, well it makes sense for me to reiterate that by following current events and by following new opportunities, you can actually make money. Also, if you want a cheaper alternative, you Vxy essentially does the same thing, but it's like a quarter of the price. You do get what you pay for and the volatility isn't the same with you Vxy as it is with tricks and that's why I Always choose fix. Okay, before we get to the last one, we're going to go ahead and do a bonus.

So Gilead has been a stock that we've spoken about a lot because of their trials with the leading beer bug treatment REM disappear and because we've gotten so much drama and mixed results. Gilead has been up and down massively providing great opportunities to trade off of. But the reason I'm including this is because Gilead just received their emergency FDA approval and also just donated tons and tons of their treatment to hospitals as a last-ditch effort to help stem late-stage beer bug patients. Now, this is of course going to serve as great publicity for Gilead and more publicity for their drug.

which means we're going to have more positive and negative catalysts like we've had over the last couple months to trade off of, which is why it's worth mentioning for this bonus on the list. Okay, lastly, AMD Now AMD is what we call a comeback King a comeback King Folks, this is when stocks consistently go from oversold to overbought again and again. That means that historically, every time AMD was oversold, if you had just entered there and held until it was overbought, you would have made money and sometimes a substantial amount of money like in this case. But the idea that we can just buy in because a stock is oversold? It's It's a flawed idea that's like saying oh, just buy the dip It's not as simple as that.

Stock market has a lot more nuances than we'd care to admit. As traders, we also have the responsibility to manage the risk if this patent does suddenly break because if he's buying it over stolen, selling it over bought a hundred times, but then on the 101 'the time it breaks. Hey, we could just wipe out all the profit. So the way that we manage our risk is by acknowledging that yes, we do have a comeback pattern of coming back from oversold every time and going to overbought.

But we are also in a situation where this sell-off is a result of a negative earnings catalyst and B has a history of steadily negative earnings catalysts with subsequent runs. But the key opportunity here is just the fact that AMD is selling off and allowing us a better entry point to ride future upward potential. But we don't just buy stocks because they've been beating down. If this continues to be beaten down and then show signs of recovery, then it's like hey, well, now we have a discount, but we also have priced rates to trade off of Fantstico.

and ideally folks like we'd love to see more selling off to get an even better deal. Like I've said many times and many people criticize me because I'm like oh, I want a good deal people? Wrongly, he's just so cheap it's disgusting. But the truth is that not getting a good deal is screwing up your positions. When you're buying in, when something's overvalued, you're just getting ripped off.

Who cares that something's running up? Who cares that something's up twenty percent If you're not getting in a good deal where you could ride most of the move, right? So the goal is to find it when it's at a good deal, and the RSI is one of the powerful tools to actually take advantage of that. But the other thing is on the fundamental side, right? So earnings When you have a negative earnings catalyst that creates a buying opportunity because it goes down really rapidly and then since every reaction is an over reaction, you have tons of upside to trade off of. But anyways, those are just my cue cents. My videos are mostly just me ranting anyway, so take what you will anyways, folks.

I Do hope that this video is valuable. If you have any questions whatsoever, feel free to reach out to us in the comment section below or join us on Zip Trader Circle as part of Zip Trader Circle which is our free Facebook group. You will also get lightly watchlist with all the top takers that were watching so that you can keep up to date with all of our favorite place Fantstico! Also if you are wondering what broker watch broker to trade these stocks on, we do like to send new traders over to Weeble and you will get not one but two free stock. Can you both sign up and deposit with our link in The description below have tons of great features.

They are a fantastic and powerful broker so it's worth checking out if your broker curious or you'd like to start trading stocks link in the description below. Anyways, folks have a great day and I'll see you in the next video.