Here’s my take on TelaDoc ($TDOC) and Zoom Video ($ZM) (May 01, 2020)
TDOC ZM TDOC ZM
I want to look at Teladoc ( NYSE: TDOC ) here. This is a stock that has had a heck of a run; it is a typical thing that you will see in some stocks that have these big runs. They break out fairly orderly, at least in relation to the way it is trading now. You see this stock; it was very, very directional. It broke up and then most days it just kept moving higher. And then as the stock attracts more and more attention the swings get more violent because retail traders are rushing in to just buy the stock, I got to get this stock. Larger firms, of course, have been in it for quite a while and so they are kind of selling into that.
You have seen this in Zoom Video ( NASDAQ: ZM ), it’s the same kind of thing. A big breakout here a nice move and then the stock suddenly gets all wild and now it’s back to the 50-day moving average. Whereas, just a month or two ago, the 50-day moving average was nowhere in sight, if you are sitting on the price, it’s way below. You will get these stocks like this, that it looks like the best times or the best days are behind it, and then very well may be, but there are still trades to be had and so we will look at these two.
If you look at Teladoc ( NYSE: TDOC ); a big zigzag, finally back down to this level and a rebound off of 160.00. Well, are you seeing a pattern take shape here? You see the stock printing this kind of channel here. So you are buying this stock and then you keep a stop, give it about 8 percent to begin with, a typical thing.
Then with Zoom ( NASDAQ: ZM ), you can look at a similar thing. This is a really steep sell-off, a gap and then a crap; this is a steep sell-off. But we have seen these steep sell-offs before here like this and then the stock runs up to the upside as well. I am just saying it’s going to be harder for a stock to have a big run when there are so many losers right behind it, folks that bought the stock, literally, this week and are down a big bunch of money.
So I would look for this, actually, to run higher, I just don’t know how high. So you are buying the stock now and you keep a stop either just below the 50-day moving average, or if you really want to keep it tight, below today’s price of 132.67, make it like 131.00, something like that.
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