Wall Steet Just Overreacted on This Pharma Company
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You ever see a co-worker overreact to something?
Maybe you’re working alongside them at the office, and they spill coffee on their keyboard.
“Oh my god,” they yell out.
They rush to the bathroom and come out with a wad of paper towels. They wrap up their keyboard over and over again until it looks like a mummy.
“I’m never drinking coffee near my keyboard again,” they tell you dramatically.
But their overreaction doesn’t quite match what happened.
Just like in the markets…
Overreactions are also a big part of trading.
Wall Street overreacts to news on companies all the time.
For example, a company reports negative earnings, and Wall Street overreacts by sending its stock way too low.
Then once Wall Street comes to its senses, it corrects and the stock goes back up.
Here’s where it can get lucrative for smart traders…
If you know how to spot these overcorrections and time a trade around them, you can use Wall Street’s momentum to your advantage for big gains.
Take this latest setup on Zenas Biopharma (ZBIO) for example.

ZBIO recently created a massive gap, dropping 42% after a disappointing reaction to trial results for its latest drug obexelimab.
At the time of this writing, it’s currently sitting at $18.
But hold on a second.
I believe this drop on ZBIO is a textbook Wall Street overreaction, and the company could fill all the way to $30 in the coming days.
Smart money believes so, too.
Last week, the CEO of ZBIO purchased 100,000 shares of the company between Jan. 7 and Jan. 9.
Insiders buy for only one reason – they believe the price is going to go up.
So while ZBIO is gapping down, I think now is the perfect time to get in for a trade.
Action Plan: ZBIO is currently filling a massive gap that could extend all the way back up to $30, which is why I recently opened on a trade on the company in The War Room.
This is just one play I’m looking at this week.
If you want more trade ideas like this, I’m going live tomorrow at 2 p.m. to reveal my complete trading plan for 2026.
I’ll be revealing my top comeback stock this year, and also show you strategies you can start using today.
There will be a lot of value at this event, so don’t miss out.
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