Who’s Zooming Who?
The classic song from Aretha Franklin was wonderful at foreshadowing. Released 35 years ago, it could be redone in 2020, as it correctly predicted what would be going on. Of course I am taking a stab at some humor here, but we have mentioned how the market would potentially begin accelerating higher once the stocks that were shrugging off the recent strong softness came back to life. That has occurred as of late with DOCU lower 4 of the last 5 sessions. TDOC is down nearly 10% this week, and EVBG by almost 7%. Below is the chart of ZM, and it too has had its recent bout of weakness. It has dropped 11.3% this week so far, and that is AFTER the prior week slipped 15.5%. Now I know what many are thinking, yes it has fallen precipitously because of the news regarding privacy and security concerns. But PRICE action is all that matters, and presently it is sitting on a very slippery slope in the 50 day SMA. The weight of the name being 31% off most recent 52 week highs suggest that support may be broken here, and a move to the very round par number could be in store.