Our first idea, a cloud security company, is set to report earnings today. Analysts are expecting EPS of $0.11 on revenues of $241.56 million. Our second recommendation is a short-sale of a company whose shares are on a downward slide.
Long (Buy) Recommendation: Zscaler, Inc. (ZS)
From Shortex Market Letter
Major indices are set to continue ascending subject to the fundamentals of triple E’s (earnings, earnings, earnings) based
on expected P/E on the major indices with replacement earnings.
- Dow Jones (^DJI) @ $1,772.00, P/E of 22: could visit 38,984.00 set a new closing high of 35,799.65 on 01/04/22
- Dow Jones Transport (^DJT) set a new closing high of 17,039.38 set on 11/02/21
- S&P 500 (^GSPC) @ $215.00, P/E of 22: could visit 4,730.00 set a new closing of 4,796.56 set on 01/03/22.
- NASDAQ Composite (^IXIC) set a new closing high of 15,982.36 set on 11/08/21
- Russell 2000 (^RUT) posted a new closing high of 2,442.74 on 11/08/21.
ZSCALER
Up from $249.06. Reversal to challenge 50-DMA (278-280) and secondary resistance (290-295). Add to long positions. Raise stop loss to 249 from 218. Volatile.
Short Sale Recommendation:
Zoom Video Communications, Inc. (ZM)
From Shortex Market Letter
ZOOM VIDEO
Down from 146.23. Continue sinking with repeated plunges. Retesting previous low of 134.70 in the offing. Lower stop loss to 163 from 182. Volatile.
Joseph Parnes, Shortex Market Letter, shortex.com, 800-877-6555, February 16, 2022