Disclaimer: I ended up selling and taking another fine profit on ZM. NFTRH is much more than a precious metals market service.
Stocks, commodities, bonds, etc. are within our scope, along with the macro work we do each week.
Zoom Video (ZM) continues its launch off the lows
ZM was added earlier in the year, during its downtrend, which I had actually thought was a base/low that had yet to identify itself. It was added for its stabilizing internal operations and adjustments, its cash horde and its relative value in the world of Tech. It was held at a loss for weeks (or months), but I held the value proposition. Then the company proved itself in a quarterly report in August and a nice profit was booked.
Then ZM bull-flagged downward, was added back (all per NFTRH trade log, BTW) and after some grinding, is on a hysterical new upside to a daily chart overbought condition (RSI).
But is ZM really so hysterical? Not in a longer-term weekly chart context. It is however, getting overbought by RSI here as well. But “overbought” is another way of saying “bullish”, and it is not yet extreme on the weekly.
I may have to consider taking another profit, ahead of upcoming earnings. But it’s actually a tough decision and the broad market view (operating to two distinctly different analytical options, per NFTRH 835) will inform my judgement on this. I do hold the Cloud/SaaS sector, per a post last week, and several other related individual stocks. So Gary, it’s coming up to decision time from several angles.
I am in love with the stock* and I have ridden others I’ve been in love with back down after not taking a profit. So there’s that.
The point here, on a day when my remaining gold stock positions are getting hammered (w/ the exception of crazy little AE.V) by a hard but healthy decline in the PM complex (call it the “America is great again” correction), is that the market usually does not know shit until one day it knows, and the MOMOs show up to drive a situation higher or lower.
* Actually, in love with my own perceived genius in twice playing it after ID’ing it as a value. That in itself is a ‘sell’ signal because I sure am no genius.
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Gary Tanashian