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.


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