Today we are going to be talking about the top swing stocks from mid-august 2019. Now these are going to be stocks that based on my previous experience, have high likelihood of providing the price action that we need to trade off of this month. But I never recommend randomly buying and holding these stocks without any sort of plan. Because our goal is to trade off the short-term fluctuations, we need to have a concrete entry point and a concrete exit point and we need to execute on that 100% of the time.

It may sound cliche, but not planning is essentially planning to fail. You need to have a plan when trading within the stock market. but that's enough of my spiel. But anyways, before we get into this, the only thing that I ask of you in return for this video is that you hit that ravishing like button and also subscribe for more short, sweet and simplified videos on how to trade the stock market.

Ok so before we begin every time I make one of these videos, someone asks me which broker I recommend using to trade these stocks on and I've always recommended. New traders Start off with a platform that is beginner friendly, is Commission free and has a pretty easy setup to get you going, and the broker that I think best fits these requirements is Weeble. And to be honest, last month we ranked number 3 in terms of all of the affiliates who referred people to Weeble. Unfortunately, many say that if you're not first, you're last.

So if you are on the fence and you haven't already joined Weeble, my suggestion is just to check out the platform, get the free stock trade with it a bit and see if it provides value to you. Ok, so I'm going to start off with Zillow now putting the fundamentals away for a brief moment. Zillow Just got beat down like a rabid dog, but look where it stopped. As of Friday's close, we haven't seen it break below or long-term s in a line, and thus it hasn't changed its direction.

As we know, stocks trading below our long-term SMA line are considered in a downward direction and stocks that are trading above it are in an upward direction. But this beat down has brought it so close to accepting a downward direction. and I would not be surprised if it ultimately did accept a downward direction at least temporarily. but bringing me fundamentals back into this.

What is it that caused this beat down? Well, it's denoted here that this was an earnings release and new revenue guidance. So without even looking more into it, we can say and declare this as a fundamental or news catalyst based move. But why do we care to do that well? Because we can then go back and trace the previous price action and see how Zillow reacts to news in either direction so that we could base our strategy on that. previous patterns tend to repeat themselves, but they don't have to.

So we're going to be using a bunch of different price action tools to mitigate the risk in terms of playing this fundamental news play. So to track what usually happens, let's go back and look at the first denotation of a news catalyst. We saw it get beat down and then it ran up massively a few weeks later. And by the way, the denotation that I'm talking about are these little symbols right here.

If they Chris one has it in these little symbols, it's a great way to track to see what earnings are coming out and different revenue guidance and whatnot. With the second denotation, we saw it run up massively and then the opposite happened. It got beat down, This overreaction happened, and then all of a sudden it went in the other way with the third denotation Aranda massively as well. And then well.

it went rapidly in the opposite direction. and in the most recent denotation, we saw it run down. So what does this tell us? Well, it tells us that Zillow much like the rest of the stock market is prone to news over reactions. people overreact to every news release in one direction or the other, and then when the new sinks in, it reverses and we can profit off the overreaction, This is relevant because we are now at a point of overreaction.

The question though isn't whether or not this is an overreaction, but it's whether or not we are done with the overreaction. It's very easy to look at this and say okay, well this is one of the worst over reactions on the chart. We saw what happened and all the other over reactions in history tends to repeat itself, so it must be time to enter. But that might not be the whole story and it's not good practice to buy stocks just because they've been discounted.

we need to see signs that they're going to recover. And what do I mean by that? Well, let's switch to a time frame that we would be focusing on for a short swing trades. We're not focusing on the year or 100 day-to-day chart if we're taking a 10 to 20 days swing trade. we're just looking at that for context, still showing the beat down, but it is also showing that we are still down trending in terms of pure price action and in terms of direction under our long term as the main line which is that red line.

But what I'd look for is a solid show of price strength with a conformation above our short term blue SMA line and a good deal on the RSI I'd say if we continued to sell-off we'll see the long-term rate as the main line adjust downwards to a point where it might make sense to wait until we change directional right. That'll be an elevating factor, pushing the rest of the price action in our favor. But from where it is that I'm standing, I'll be looking for shows of price strength and always waiting for confirmation. We always wait for confirmation, folks.

And on a more technical note, Zillow appears to be forming a comeback pattern long term, where it irrationally discounts to oversold and then goes to overbought, allowing us to buy in at oversold entry points and sell out at overbought exit points. I Just made a video on the most effective way to trade using the RSI and I actually spoke about Zillow and the ascending RSI formation that leads up to comeback King and comeback Queen patterns and I'll link to that in the description below. So if you haven't caught that video, I Usually don't upload twice in a day, but I wanted to upload it this morning just so that people have an understanding of what I'm covering in this top stocks video. Okay, so next, we were going to be talking about Docu.

Now this was actually a pic from our swing stocks video a couple months ago we had an overreaction back in June after in earnings and because every reaction in the stock market is an overreaction I Said my usual spiel I was like folks, please wait for confirmation, wait for confirmation and since over reactions or over reactions, we did have some upside after over selling, it's not surprising generally speaking, any piece of news good or bad is going to cause an overreaction that we can then trade off of and I don't have a magical crystal ball I Don't know when an overreaction is going to end I Don't know if it's going to effect a long-term value, but all I know is there is going to be an overreaction because everybody overhyped every piece of news in one direction or the other. The level of overhyping? That's never concrete. We can get an idea though of the level of overhyping based on previous patterns, but it's never going to be a hundred percent. So the only thing that we can know and the only thing that we can seek solace in is the fact that there's always overreactions with any news catalyst play.

And to reiterate this point just so that it really sinks. then I dug up the clip from what I originally covered docu at this overreaction, let's go ahead and play it just to give you an idea of how important it is to understand over reactions. and again, this was before it recovered from the overreaction dog just screams overreaction. But I'm not trying to toot my own horn because of course I cover a lot of stocks and it's easy for me to go back and pick ones that did really well.

But I'm not picking stocks because I think they're going to do well. I'm picking them because they have a high probability of providing the price action that we need to trade off of. I don't know anymore than you do in terms of help. we're going to react to something I Just know that based on the charts and based on previous patterns, that something is going to be more likely to happen.

Will it happen with that one stock? I Don't know. There's no way to really know that ahead of time. But anyways, Doc, you did have a previous pattern of massive / reactions on these catalysts, so this wasn't completely unforeseen. and that's why I emphasized it in the video and the truth is like I said, we never have any idea when we will see signs of a reversal I recommend stocks based on the fact that if we see signs of a reversal such as intra weak or perhaps intraday confirmation, then that's the point in which the probabilities would switch in our favor.

and that is something that you can only judge by looking at the price, action yourself intraday and following these plays and learning how / reactions work. You need to take the time to study and learn how / reactions work. Now when I say study I don't mean just passively watch Youtube videos on people talking about the stock market Obviously I see value in YouTube videos, right? But sometimes it gets to this point where you just kind of watch youtube videos and then you never take action on anything and it gives you the dopamine hit that makes you feel like you're doing something, but you're really not, You're just watching someone talk and you just it's nice to support the channel and I really appreciate all my viewers. but it's not the best thing for you.

You need to watch these videos, you need to watch other creator videos and then you need to go practice. And I don't mean practice with real money. You can practice with real money. but my suggestion is to practice using a paper trading or rewind trading platform that allows you to trade using no money at all.

Of course you know that exists, but a lot of people don't take that seriously. They're like, oh, why would I waste my time trading with fake money? The answer is obvious: if you can't grow a fake account, why do you think you can grow a real account? But the point is, always take action. you're at the end of the day. you're the one that's responsible and the one that benefits from your learning.

Okay, so why is this long talk about Docky relevant? Well, because Doc, you just got beat down once again to almost near its previous overreaction loves, but this time we don't have an earnings release or a revenue guidance catalyst to back up the overreaction. In fact, I have a hard time finding anything to justify the overreaction. There are some articles, but I wouldn't link it directly to the overreaction and the analysts slash monkeys are projecting an average price target at 61 dollars and 50 cents, which is substantially higher than the current trading price at 45:33 And these are the major analyst firms that are ranking it. JP Morgan Goldman Sachs Morgan Stanley So these are credible monkey and ferns as far as credible goes, but we don't care much about the opinions of monkeys.

This isn't a game of monkey-see monkey-do Our two biggest enemies in the stock market are the Honey Badgers and the Monkeys. The monkeys are the analysts that prop up to share price based on their selfish self-interest and their at best faulty and conflicted research and our wonderful Honey Badger friends. Those are the insiders within the company, the ones that release strategic press releases designed to prop up the share price and boost the long-term value of their company. But don't get me wrong, we don't care about the opinions of either of these two groups of people, neither the Honey Badgers nor the monkeys.

But we know that a lot of sheep investors do care and that props up the share price. The sheep investors are known to care about the monkeys' opinions, and many will form their investment decisions around popular analysts' price targets. For example, if they see something trading way below a popular target price, then they're going to be like, oh, this is undervalued. Little do they know that they're listening to the rants of monkeys, but in any case, this helps us and it becomes sort of a self-fulfilling prophecy for the monkeys as well.

Okay, going over to Drip Now drip our oil gas ETF is looking very overextended. We've had this massive run-up day after day, and some recently unprecedented upward direction over our long term directional SMA line. I Like buying into consistent up training patterns, but I hate buying into overextended run ups. There is a huge amount of directional strength because of this over our long-term SMA line, but while it might continue to run up I'd focus on spotting reversals and if we see a reversal, I'd flip the switch and trade D in first gush as gush goes up, drip goes down and vice versa.

We are way overdue for a reversal based on price action trends and seeing a break back above the directional S. The May line could mean substantial growth for us, but you could make the case in either direction and as long as we have the volatility to trade off of, we will be golden. Okay now I am not including this in the overall number count, but I've spoken about Andy in almost every swing stocks video. so I'm going to continue the trend I Still believe in AMD swing trade capabilities, but it is also looking quite overextended.

I'd love to wait it, buy in at a push back from its uptrend perhaps below fair value on the RSI and then benefit from the long term elevating factor, which is that long-term consistent uptrend. We love buying into long-term consistent winners Anyways, folks I Hope this video is useful I appreciate you watching and being a member of our community. If you have any whatsoever, feel free to reach out to us in the comment section below or join our free zipper in a circle Facebook Group inside these zip trailer circle Facebook group which is a free Facebook group with a link in the description below inside that group. I post lightly watch lists with all the stocks that I'm currently watching as well as my open charts that I have open in the morning when I wake up.

The point of this is not to tell you when to buy and sell because you're not going to find that and I can't give that to you I don't have the ability to give that to you because it's based on the minute-by-minute price action and certain criteria, but rather to give you an idea of stocks that provide the volatility that we need to trade off of. and I Think that this has been a helpful thing for a lot of people. So I've continued to post a night after night for like the last 7 months. but we also have a discord chat, a training tutorials, playlist, and a bunch of other resources in the zip trader.

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