The Gilmo Report

September 2, 2020

September 2, 2020 7:34 pm ET

Hundred-point overnight futures moves in the NASDAQ 100 futures have become commonplace as the market continues its white-hot rally. Some of the individual stock action has a climactic feel to it, but as a stock like Tesla (TSLA) has repeatedly shown, yesterday’s climax top is just today’s breakout/takeout high.

The biggest news so far this week has been Zoom Video Communications (ZM), which blew out earnings and then jacked on a 40.78% one-day gap-up move. Theoretically, this could have been played as a buyable gap-up (BGU) but the intraday was extremely volatile. ZM opened at 439.51, headed south before posting a firm intraday low at 410.68, and then spun its way higher to close at 457.69.

Today the stock tested the 410.78 low and held as volume declined. Technically this brings ZM into a lower-risk long entry position based on yesterday’s BGU. One then uses the 410.78 as a tight selling guide.

 

The rest of this report is available for Gilmo Report Members only.
The full report will be available 45 days after it is posted. For immediate access: login or subscribe

Gil Morales & Company, LLC (“GMC”), 8033 Sunset Boulevard, Suite 830, Los Angeles, California, 90046. GMC is a Registered Investment Adviser. This information is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to GMC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Gil Morales & Company, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2008-2020 Gil Morales & Company, LLC. All rights reserved.