2 inside day candlesticks are forming in ZM as a coiled spring is forming on the lower timeframes. ZM has not participated in the recent market bounce and seems to be acting inversely to the action. Watch ZM to start breaking out today or tomorrow above 147.
Long @ 147 Stop Loss @ Below today's low. Target @ 180
Comment
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Good start in ZM. Managed to pull the trigger on this trade. Trade journal post to follow soon.
Zm is very overpriced and i do not believe technical can be relied on during these times.
It is inverse to the market because people tossed a bunch of cash in it when they sold everything else because they heard the name and literally thought "a remote software company that will be awesome with everyone working from home" unfortunatly stocks are more complex than that. Thus, this thing will go back under $100 no doubt. Target for 180 may hit but dang if it does go short right away.
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Check out WORK (Also overvalued big time)
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Trader_Kaji
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@bkuttenkuler, Speculative stocks like ZM are definitely doomed to get shorted in the future just like TSLA and SPCE. However, underestimating the power of crazed speculation by shorting too soon can lead to a lot of pain. The current trend is up, buyers are still in control, and I would not try to fight this trend until clear signs of topping are in.
Using P/E is a poor indicator of value. At it's highest, AMZN had a P/E value of 3633 in September of 2012 where AMZN was priced at $254. People who thought AMZN was overpriced in 2012 must be feeling real dumb now. The reason P/E value is a poor indicator of value is because money always flows into the companies that have the best potential to grow (AKA High Growth Companies). These High Growth Companies are in the stage of development and reinvestment therefore their earnings are typically low or non-existent meaning their P/E value is intrinsically high. For more information on P/E and value, I recommend Peter Lynch's book One Up On Wall Street.
In this case, using technical analysis, I am predicted a short term burst of buying power in ZM where profits should be taken quickly as the target price of 180 approaches. I am a swing trader therefore I hold stocks for 1-2 weeks at the longest. Since I am risking about $7 per share on the trade, I have the potential to make 4.70 times my risk if the 180 target hits. This is what trading is about.
bkuttenkuler
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@Trader_Kaji, should be fun! Great post much appreciated!
@bkuttenkuler, Haha yup. I was charting this trade here. ZM double topped and went lower from there. 140 was a good spot to get short. Did you catch some shares on the way down?
bkuttenkuler
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@Trader_Kaji, I did get some on the way down this time.
I will admit I lost some $$ on ZM already closer to the IPO so really back to even.
Trader_Kaji
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@bkuttenkuler, Welp the great thing about trading is you can be wrong more than 50% of the time but still make bank. Nail it the next time!
It is inverse to the market because people tossed a bunch of cash in it when they sold everything else because they heard the name and literally thought "a remote software company that will be awesome with everyone working from home" unfortunatly stocks are more complex than that. Thus, this thing will go back under $100 no doubt. Target for 180 may hit but dang if it does go short right away.
Check out this p/e
Check out how much users are paying for this
Check out WORK (Also overvalued big time)
Check me out @b_icekillah1