Zoom broke out of a double top on 5/29 at $180 and made a strong move. The next technical pennant formation was created from 6/3-6/10.
Broke the pennant to the upside on 6/10. The stock is currently overextended running straight to $260. Decreasing volume tells us this is not institutional buying but retailers pushing up with low volume. Keep in mind fund managers will need to take profits and rotate into Bonds with quarter ending next week. Typically a stock can run-up to the end of the month due to window dressing but with the stock is already so extended I would recommend puts!
For those who do not know what window dressing is this is when portfolio managers add winning stocks to there portfolios before the quarter ends. The reason is they want to show that they are participating in the winners when clients want to see positions in their statements. If you do not own these its not a good look.
Broke the pennant to the upside on 6/10. The stock is currently overextended running straight to $260. Decreasing volume tells us this is not institutional buying but retailers pushing up with low volume. Keep in mind fund managers will need to take profits and rotate into Bonds with quarter ending next week. Typically a stock can run-up to the end of the month due to window dressing but with the stock is already so extended I would recommend puts!
For those who do not know what window dressing is this is when portfolio managers add winning stocks to there portfolios before the quarter ends. The reason is they want to show that they are participating in the winners when clients want to see positions in their statements. If you do not own these its not a good look.