After another week of continuing a clear downtrend and the stock market equivalent of a depressed kangaroo after a week of intense electric vehicle related runs such as plays like Spi, Cbat and Sun W, and as we enter the first debate of the Presidential election, many are returning back to this channel in order to ask just one simple question. And that question, my friends, is none other than what Just What Charlie are the top three stalks for this week. But before we get into this week's plays, let's go ahead and review last week's plays. Okay, so to start violently, last week we started with Tesla.

Tesla was approaching its long hyped battery Day, and we did speak about how we shouldn't assume it's going to go in one direction or the other, but that at the same time a reaction in either way would be a great opportunity for us. But in terms of Wall Street's reaction, Tesla bombed and as a result it got beat down like a rabid dog. But folks, we covered the post battery day in depth within this video so I won't go much more into it, but it then overreact corrected 10 from Lowe's post battery day. Still pretty weak of an opportunity overall, but nonetheless, hey, there's something here.

Next, we spoke about Aqst. This play was up for an Fda approval, had analysts going gung ho over its potential, and we spoke about playing it for a pre-run or post run, but also being aware that a delay was a strong possibility. And it did end up getting delayed with a Crl from the Fda. and as a result, the price got beat down like a Flamingo in a Flamingo fire.

We are yet to see if we get a substantial overreaction correction. Next, we spoke about Rite Aid. Rite Aid was trading quite low in terms of where it's been historically, and we explained that it has an important earnings catalyst coming up and tends to react massively to catalysts in one way or the other, and Rite Aid ended up beating on earnings, but apparently had pre-factored in good earnings, and as a result, sold off. We are yet to see if this turns into a substantial overreaction correction or not, but Charlie Two, two of the three plays completely bombed, and the third play that Tesla play, It was weak.

It was weak. Why Charlie? would I buy your picks when I could simply just put all of my life savings into Spi? How do you explain this, Charlie, and what do you have to say for yourself? Well, I have to admit, it's completely true. most of the opportunities that we presented last week, Well, they weren't the best opportunities. The best opportunities were actually the ones that were in the broader market.

But the thing is that when you're defining how successful a pick is or how successful your watch list is, while the success of any play comes down to how you define trading, this is important because I define trading as the practice of looking at previous history, using that to judge what is most likely to happen in the future, and then using risk management to control when that strategy inevitably doesn't work. With that in mind, Was it not relevant for me to talk about Tesla when this was one of the biggest events earlier this week? Was it not relevant for me to talk about Aqst when it was due for an Fda approval? The mother of all catalysts. Was it not relevant for me to talk about Rad? Rite Aid, which had an earnings report coming and has a history of reacting massively to earnings, which it did once again. By the way, obviously these were all relevant had their own value to them, even if they didn't react in the way we wanted them.

To Point here is that when you're trading, you have to deal with getting punched in the chin in order to get one successful Trvn Fda run. We have to deal with several failed Aqst Fda delays. In order to catch one Tesla hype run, we have to deal with runs where the hype well doesn't come in order to catch a positive earnings play ahead of time. We have to deal with several that end up not being positive.

But the thing is that your sustainability as a trader is not based on your ability to have a crystal ball. It's based on your ability to find opportunities and then manage your risk. When you're going into those opportunities, risk. management is not just knowing when to sell, but it's also knowing when not to enter.

The art of being a successful trader is pinpointing tons of opportunities and then weeding out the ones that don't work out. And in these videos, I can only do one part of this for you, identifying the plays and analyzing what they mean. And I hope that regardless of whether or not we get a fruitful opportunity that you learn from them. You learn from the process of analyzing it and looking at the previous pattern and then developing a reference experience to say hey, look, Tesla isn't guaranteed hype every time we have a big catalyst.

Or hey look, earnings don't always react in the way that we want them to. But anyways, the only thing that I ask in return for a video like this one that takes a lot of work to get out is that you hit that ravishing like button. Also, one shan't forget the importance of also subscribing for more short, sweet and simplified videos on how to trade the stock market. Okay, so to start Uvxy and Svxy.

So as we enter this presidential debate earlier in the week I think it's on Tuesday we have the opportunity to look back at previous elections and see how they impacted the stock market to see if we have any opportunities that are coming up in the next couple months. So in 2016, we entered the election cycle from a summer where our implied volatility was literally flat and then boom. we start having these massive waves of volatility traders who attacked these volatility funds back then just made a killing. Now, a volatility fund often sounds complicated or freaky to people who don't know what it is, but it's basically just another way of saying fear index or uncertainty index.

These tend to go up when there's more uncertainty in the market, and this is, of course, a bit of an oversimplification, but this is the highest hitting piece of information that you really need to know in order to trade these profitably. So when it comes to a presidential election like the one that we are approaching, there is a lot of uncertainty. And while 2020 is obviously quite a different beast than 2016, we have seen a similar trend in terms of implied volatility. Much like in 2016, the summer before the 2020 election was fairly flat, and then all of a sudden in the beginning of September, it increases massively.

2016, we saw the same thing, and in both years we saw selling off and then waves after waves after the early September push-up. But after those waves in 2016, we did see a huge push upwards as we got through debates and got closer to the election. So moving forward to 2020, we can acknowledge this, acknowledge this opportunity, and hatch a plan to trade off of if it does happen again. this, time around.

And though practically speaking the way that we trade volatility implied volatility is with Uv Xy and Svxy. So U V X Y goes up when implied volatility goes up aka when uncertainty is booming and Svxy goes up when uncertainty dies down. If you look at just the last 10 days in Uv Xy, it's clear it's crystal clear and crystal geyser that this is becoming an extremely lucrative play. Uvxy had not one, not two, but three, four, and five extreme runs to trade off of.

And then when Uv Xy cooled off, we had runs in its inverse Svxy. And this is even though we are still in the middle of a wave period and haven't hit the main election boom yet. So this is extremely important to have in your toolbox as we enter the debates on Tuesday and see reactions in the upcoming week. And by the way, if you are having a hard time learning how to trade opportunities like these, we actually have a whole lesson in Zit Trader U, where I speak about how I personally attack attack leveraged Etfs as well as the wide range of other opportunities that we cover.

But if, for example, you want to learn how I trade these when I'm trading these myself, I did a live trade in Uv Xy and Svxy in the let's Trade section of Ziptraderu and you could see the recorded video of me trading that live there as well. But for folks who see value in my extra guidance, I also give morning briefings to Ziptrader You members, such as sectors that I'm really excited about like the electric vehicle sector, and opportunities like Spi, or longer term swing trades that I'm plotting or different other positions that I'll take if we have an upward or downward day. These are just a few things that I don't want to ramble on about Zip Trader U. I just want to make sure that folks who do see value in this actually know that this exists.

So if you are somebody who sees value in this, I'll go ahead and put the link to Ziptraderu in the description below. Okay, next, shill, S-h-l-l Now, I wish it wasn't trading so damn high, but let me explain why I casually have to include it on this list. Now, this is an Electric Vehicle S-pac play that has an important vote on Monday. Essentially, S-pacs are public shell companies that acquire or merge with private companies, and many electric vehicle companies are using them instead of directly ipointing on the market.

But this week, the S-pac in focus will be ticker symbol: S-h-l-l Shll Schill is voting Monday Morning Sharp on whether or not they'll be merging with electric vehicle company Helion. If approved, Shell will become kicker symbol H-y-l-n and will likely make Helion's founder the youngest American self-made billionaire. But this play is important for three reasons: Number one: an Approval tomorrow will mean that we have essentially a new player in the Eevee race. New players in the Eevee race tend to have intense hype periods that are fantastic to trade off.

Number two: an Approval tomorrow will mean that the association plays plays in other S packs like Shll that are going through similar mergers are likely going to benefit from the influx of capital into Shll because of folks thinking that the other ones are next in line and we can trade off those as well. And this isn't just like some weird conspiracy theory. this is something that we see when you have a play in one sector run up massively. The plays in that sector that are the most similar tend to run up a decent amount as well.

And the third reason that I'm including this on the list is because of the potential for an immediate reaction after approval on Monday. Now, I don't like this point as much, and the reason is because like I said earlier, Shll is trading quite high already, and I wouldn't be surprised if a lot of the move, if not all of it, is already pre-factored in. But at the same time, it's still a reality. And one of the benefits of including this on your watch list is that if it does decide to keep running afterwards, then all of a sudden you have the opportunity to catch that and that goes back to the point that I talked about in the beginning of the video where it's not all about being right and having a crystal ball, but more about making sure that you're tracking the opportunities and being aware of the possibilities with each opportunity.

Okay, and lastly, Rad. It's rad folks. Rad is Rite Aid now. Rite Aid is literally trading within hitting distance of its covet lows.

It also has a previous pattern of every single time it was oversold, it recovered to a higher overbought within no more than two to three weeks. And last week I made the case that even when it was trading here, it was really low compared to where it had been on the year. and as we approached earnings, it would be worth watching since it was such a good deal even at that time. And then earnings came out and as we know, Ryday just got destroyed.

Even though their earnings themselves was quite good, their year-over-year sales blew analysts out of the park, and the overall picture that Rite Aid created was pretty good. Yet the price got beat down even further and you could make the case. and I'll make the case to a certain extent that investors had pre-factored in good earnings ahead of time as shown by this run up here. But here's the thing, and this is why that's not totally the truth.

We sold off way below even that run-up and judging by the past write-it, has a history of harsh reactions to earnings. The last negative earnings reaction was right here, and it sold off like 35 on those earnings. If this one can take only a few weeks to recover on bad earnings, I'll make the connection that on a sell-off from good earnings like we just had, that we'd have at least some overreaction correction potential. It's also true that we are just trading so damn low that it's hard to see Rite Aid not at least momentarily pushing up from this low.

So this week I'd like to see Rydee declare a concrete bottom and show signs of increasing, and if that happens, I'd be definitely on the sidelines waiting to jump in. Okay folks, well I do hope this video was helpful for you. If you have any questions, feel free to reach out to us in the comment section below or join us on zip Trader Circle, Unzip Trader Circle. You'll have access to our nightly Facebook watch lists.

But anyways, folks, I challenge you to have a plan and be intentional with every trading decision you make this week and take some time to journal right. write down what you did right, what you did wrong, and what you're going to improve on. that way, each loss isn't really a loss, but it's actually a gain in experience. And lastly, if you are wondering what broker to trade these stocks on, well Weeble is offering you not one but two free stocks if you both sign up and deposit with our link below and they're a very powerful platform and you might as well check them out if you are broke or curious.

Anyways, folks, good luck on the battlefields this week and well, I'll see you in the next video.