Monthly Archives: July 2021

Jul 07

Why complacency cannot kill this bull market, plus what comes next for the meme stocks

By Jani Ziedins | End of Day Analysis

Free After-Hours Analysis: 

The S&P 500 added 0.34% Tuesday, bouncing back from Monday’s modest decline. This makes it 10 up days out of the last 12 trading sessions. Not bad.

Headlines remain benign during these slower summer trading sessions. Not much is going on and the market’s half-full mood keeps shrugging off all of the reasons stocks should be lower.

And so far, there is no indication anything is going to change anytime soon. Monday’s 1% midday swoon would have broken a weaker market. Instead, most owners shrugged and kept holding. Say what you want about complacency, but when confident owners refuse to sell, that makes it really hard for any selloff to establish a toehold. And as such, the index finished Wednesday at yet another record close.

After-hours futures are down a quarter of a percent and maybe that means stocks open lower Thursday. But if a person believes a trend is more likely to continue than reverse, any near-term weakness is simply giving us another buying opportunity.

Until selling pushes the index under 4,250 support, I’m holding for higher prices.


As well as the indexes are doing, the meme stocks cannot catch a break. GME fell under $200 support and AMC was rejected by $60 resistance.

I wrote on these pages back in May that GME’s $200 breakout was buyable and the same applied to AMC’s $15 breakout. While I’m no fan of these stocks, I trade the market and when it tells me to buy, I buy. And the same applies when it tells me to sell.

No matter what you think about these stocks long-term, they have been flashing sell signs for a while. When AMC struggled with $60, that was our signal to lock in profits. The same followed GME’s failed flirtation with $300.

Remember, we only make money when we sell our winners. And guess what? If we sell too early, we can always buy back in. It is far easier to do that than it is to wish a stock back up to a level that we regret not selling at.

As for what comes next, there is zero excuse to hold GME under $200 and there is still time to lock in respectable profits in AMC before this one retreats back to support.

As for entry points, GME is buyable only if it reclaims $200 support and AMC is buyable when it breaks above $60 resistance. Until then, these are very clear sells.

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Jul 06

Why Monday’s index selloff was bullish, plus what ZM has been up to and what we should do with it

By Jani Ziedins | End of Day Analysis

Free After-Hours Analysis: 

Monday started off well enough for the S&P 500 with the index poking its head into record territory at the open. Unfortunately, that was as good as it got and prices tumbled 1% from those early highs in a relentless, one-way selloff.

There wasn’t any news driving the morning selling and instead, this was simply a counter-reaction following seven consecutive days of new record highs, a streak that hasn’t been matched since the late ’90s.

Two steps forward, one step back, that’s all Monday’s selling was. No matter how good things are, down days are inevitable. And as expected, most owners didn’t flinch and prices bounced in midday trade because confident owners refused to succumb to the selling.

While the index ultimately finished 0.2% in the red, this intraday rebound confirms this is still a very resilient market. That means sticking with what has been working and continue holding for higher prices. The only thing that would give me second thoughts is if the selling crashes through 4,250 support. Until then, lookout above.


It’s been a while since I wrote about ZM, but that’s because this stock has been grinding away out of the spotlight. As I told readers a couple of months ago, this stock was buyable following it’s bounce off of $300 support. And look at that, two months later prices are 30% higher.

But as is always the case, we don’t make money until we sell our winners. 30% is a very worthwhile profit for two months of work and demanding more than that is getting a tad greedy. If a person really likes this stock, they can keep holding but move stops up to protect those profits. And even better, take a little off the table. Remember, we can always buy back in if this grind continues through $400. Until then, expect this stock to take a breather at current levels for a while. (Two steps forward, one step back)

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