And yet another week characterized by breaking into more all-time highs, the S P 500 is up 8.58 percent year-to-date If you had bought at Crisis Lows when the media said that you were an idiot for buying stocks during a global pandemic, you'd have made 35 to 40 percent on your money. And that's just buying the overall index. Not to mention individual stocks like Tesla, that if you bought near Crisis Lows, you'd have made more than 600 percent on your money. But in a market condition that consists of us continuing to struggle through a global pandemic continues to edge closer to a massively consequential election, and continues to be propped up by a bullish fed.

Many people are coming back from long walks in the park and in the forest to ask just one simple question. a question amongst questions, but a question that also refuses to yield for pedestrians. And that question is what? What? Charlie Are the top three stocks for this week? Well, in this video, we're going to be talking about the top three stocks for this week, but unfortunately I still don't have a place to film at, so we're going to be filming right here. Hopefully the view made up for my lack of preparation with the office, but probably not.

But in this video, you're going to be learning about the top three stocks for this week. But first, what what happened last week? Charlie? So last week we started with Bby Best Buy. We spoke about how Best Buy was due for an earnings report on Tuesday morning and how other similar tickers that had run up in a similar way would then get beat down on earnings and have an overreaction to trade off of. We also spoke about playing it for more pre-anticipatory running on Monday.

On Monday, it continued pre-anticipatory running it open, sold off, and then pre-anticipatory ran again to 120.. Then, as we projected, when their earnings actually came out, the price dropped and it found a bottom at 108 6 and then ran up to 114. A little bit of a weak recovery, but nonetheless an opportunity. Next we spoke about Lpcn.

Now, Lpcn was probably one of the more exciting plays last week. Lpcn was due for an Fda approval, but was cooling off its pre-anticipatory run when we covered it on Sunday night. Now on Wednesday we had a boom Bostic day where we got a 28 push that we tweeted about, but later on, Lpcn got a delay and the company put out a press release saying that it'll likely get approved in a few weeks. Generally, any delay will spook short-term money and thus this can create another good opportunity for buying points if it does actually end up having a new pre-anticipatory run.

Next, we spoke about Tesla. Tesla had a split coming up and we spoke about how this is generating hype. I explained how our way of trading splits or any sort of catalyst is to play the pre-anticipatory runs and the post runs if they have the proper setups. Now, Tesla continued running up last week, but again, it could have also cooled off.

I've been asked at least a thousand times in the last week should you buy a stock before a split and the answer is, well, it depends. It depends on whether or not you get a high probability setup. Are you getting clean runs? Are you getting a lot of hype? What does previous behavior dictate? Are you in the middle of a huge momentum period? All of these things play into whether or not you should buy a split before a split? Okay, but before we get into it, my one suggestion this week is to focus on small but consistent gains. If you're not profitable yet, I know that it sounds defeatist or pathetic to focus on small gains.

I get it. I get it. But if you don't focus on small gains, quite frankly, you don't deserve big ones. Make a goal to consistently make ten dollars a day and work towards scaling your skills and capital up to achieve that.

Then the magic is that once you've hit that small, attainable goal, then you can go and hit more small and attainable goals and keep scaling that up until you hit big goals. And of course, if you're going to do this, you must always do it. As a spoiled brat, we always trade like spoiled brats. That means having a clear plan.

That means being picky with our setups, being spoiled with the setups, that we trade, and of course, crossing our arms and screaming. I don't want it when you see something that's less than ideal. But anyway, speaking of being a spoiled brat, the one thing that spoiled people always do is they always hit that ravishing like button. Okay, so to start Tesla and Apple Now this is going to get me a lot of hate.

So let me just go ahead and say that I am bullish on really both long term. but I want to set clear expectations as to what we're going to be watching this week. I think there's a lot of people that are just going to buy in blindly thinking that they can get out in a couple weeks and it's like a guaranteed profit. But that's never the case with anything.

Nothing's ever guaranteed in the stock market. But anyways, because these are both going through the same thing and they both had a similar reaction, we're going to be lumping these two together, but both of these ran up massively prior to splitting and over the weekend the split has been reflected on both. So we are going to be seeing the reaction. Market Open Monday and throughout the week.

Now taking this back a second. the widely accepted thesis on why these ran up so much after their respective split announcements was because short-term money was betting that after the split, tons and tons of more money would pour in as poorer investors would now be able to afford shares of Apple and Tesla at post split prices. And the idea is that the short term money would then go and take their profits as Apple or Tesla ran up post split. But the question, now that we're getting to that post split period, How much short term money is there that actually caused this to run up pre-split versus how much money there is in terms of smaller investors going in and buying this after it's split because if you have more short-term money pulling out and taking their profits post-split then there is small investor money pouring in.

then you get a crash. A lot of people make the mistake of assuming that the market is mostly powered by millions of small-time investors, and that events like this that make stocks more affordable or shattering for the stocks. But again, this is a misunderstanding on the composition of the market. Do not fool yourself into thinking that the big power in the stock market, the big Goliath power that's just waiting to be unleashed is these tiny little investors that can only buy one or two shares.

Remember, almost half of Americans don't even participate in the stock market, and this is largely the demographic that wouldn't be able to afford the shares at pre-split prices in the first place. And around 80 percent of the S P 500, which is referred to as the market is owned by The institutions. It's owned by institutions, and if you're an institution that can't afford to buy Apple pre-split then you've got some serious problems. It's also true that somewhere around 90 of the stock market that isn't owned by institution is owned by the top 10 percent of U.s households.

And yes, some small investors are going to be able to buy this. But at what point at what point? And this is the question that I'm asking at what point is that factored into the share price? You have two large companies that were already very, very, very expensive based on where they were at just before the pandemic. When you have these companies going up hundreds and hundreds and hundreds of millions in market cap days after announcing that they're going to be split, you have to ask yourself how much money is really going to be pouring in here and how much of it is really just speculative, short-term money. So all I'm saying is, do not overestimate the long-term effect of a stock split.

If you're looking to trade Tesla or Apple for a run up on Monday or Tuesday or throughout this week, that's fine, right? That's totally fine. But if you have this idea that you could buy in and just hold it for weeks or months and you're just going to be guaranteed profits, well, that's sort of a sad joke. At the end of the day, it's totally fine to play any catalyst as long as you get a participatory run or a post-reaction run if we get a strong open on Monday, if we get a strong open throughout the week. in terms of this split, hey, that's that's totally fair game to trade off of.

Okay, next, Zoom. Now we've covered Zoo many times since the beginning of this crisis, but throughout they've been quite a huge winner. They are up nearly 339 percent year-to-date and pretty much all this year. Zoom could do no wrong.

Some of our long-term watchers may remember us talking about buying Zoom on Dips as bad news around their security flaws were revealed here here and here, but I'm going to approach this earnings like I would approach any other catalyst and any other earnings. That means again playing the pre-run and post run separately. If you are looking at Zoom's current price, we are in a period of cooling off after this run. Volume is also dying down, and this is a sign of weakening price action.

but as we get closer to the earnings, there will be a slew of new volume pouring in. So let me paint two pictures. Picture one picture. Uno Zoom comes out with a slight beat or even a slight miss on earnings expectations for the previous quarter, which leaves the price action sort of flat, but then has weak estimates on earnings for the next quarter And this causes Zoom to get overly beat down from its extremely high trading price and then provides us an overreacting correction to trade off of.

This is also the more preferable situation because we'll have more upside. but picture two is that Zoom massively beats earnings expectations, but the high price and previous history would lead me to believe that there isn't really that much more power to totally shoot Zoom to the moon as much as there is as there is power to bring Zoom to its knees on bad news, if that makes sense. So I'd rather have Zoom disappoint on earnings and get beat down because this is still a stock that has an intense amount of people who would love to snap it up on a balance from any downtrend. And as I said earlier, historically, Zoom tends to be a better buy based on periods of overselling in these dips.

So if we can dip too oversold based on a negative reaction, hey, that's something that I'd love to trade off of Now I hate to go back to Lpcn again because we've talked about this so many times, but after Wednesday's whole shenanigan where after selling off, it ran up 28 percent and with the recent delay that the company's saying is probably going to be resolved in a few weeks, this is something that's definitely worth watching. Lpcn is a stock that has a previous history of running up in anticipation of Fda approvals, and again, they just got their Fda approval delayed by a few more weeks and as a result got beat down. Providing a lot more upside if we get even more pre-anticipatory runs. Okay folks, well I hope that you found value in this video.

If you have any questions, feel free to reach out to us in the comment section below or join us on Zip Trader Circle. Remember the stocks on these videos are not stocks to just randomly buy and randomly hold. These are stocks to have a plan with. These are battlefields.

But anyways, if you found this video helpful, make sure to hit that ravishing subscribe button. And of course that ravishing like button. Lastly, if you are looking to learn how to trade, we are still offering fifty dollars off Ziptrader you when you type in coupon code stay home 2020 before checkout and I'm gonna go ahead and put that link in the description below. Make sure to familiarize yourself with all that it is that we offer so that you know that we're a good fit and we're a good fit for your trading goals.

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