Here’s your trade on Zillow (Z). (July 31, 2014)
I want to look at Zillow ( NASDAQ:Z ) here. Basically here’s what you need to know, Zillow ( NASDAQ:Z ) actually continues to work. It obviously got a little ahead of its self here, pretty good numbers, and buying Trulia ( NYSE:TRLA ). Well now what the stock’s doing is just settling back down to this range.
There’s the 50-day moving average, watch and see when Zillow ( NASDAQ:Z ) falls back here; just wait and see what happens when Zillow ( NASDAQ:Z ) tags this 50-day moving average, which right now is at 130.00 and in a couple of days it will be a point or two above that, but I think this stock still works. The stock was down 3.3 percent today, but look at volume, it was less than average. The same thing with yesterday, we had these big massive moves on that news, and then a little bit of “sell the news” buy, kind of the first part of the news, then the dissemination of the news.
Well now the stock’s trading on lighter volume, so I think what you want to do is stand aside. There’s nothing wrong with this stock, nothing wrong with it at all, just stand aside and let the stock settle in. It’s down three days in a row, my bet is it won’t be five, it might be four but it probably won’t be five. So look for the stock to bottom out somewhere around here and that’s when you want to look to buy.
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