Z Update

Yesterday I put out an "Add-to" or new Put position idea for Z using August monthlies, Adding to Z Aug $155 Put.

I also opened a weekly put for this Friday's expiration in very small size as the 5 min chart wasn't as bad as the 3 min chart which was horrible yesterday, I usually have a 5 min standard for most trades. I closed that small position (ultra speculative) at 10:30 for a +90% gain. I think there's a pretty good chance we get another Z entry set up here shortly, which is why I closed the weekly put so quickly this morning, but at the right time as it (the Put) has drifted a bit lower since.


After adding yesterday's puts to the position that was already in place for August monthlies they went from down -40% yesterday to -4% right now, I would certainly consider adding to them at the right area/set up. As far as an equity short, I'd like to see a little more happen in Z before considering that.

 The typical increased ROC that we see before a stock transitions from late stage 2 (Mark-Up) to a stage 3 top, has already taken place in Z, I won't get too much in to my personal opinion of one profitless company buying another for a half billion more yesterday than what was thrown out last Friday amongst a declining real estate market and the prospect of a dead market as rates rise as both of these are real estae- Zillow and Trulia, but it's something to consider.

The reversal process for this macro trend is just not there yet, but I am interested in keeping this one on the radar.

 As for the intraday charts, I saw prices losing momentum and starting to move sideways which is why I closed the weekly put and as expected an intraday 1 min positive divegrence is developing for a corrective bounce, depending on where it moves to and what the signals look like will determine what tool I would use in entering or adding to the position.

The 3 min chart falling apart dramatically yesterday was the reason for the trade idea yesterday, Adding to Z Aug $155 Put  and my own little speculative trade.

 The 5 min chart makes obvious sense with a positive divegrence forecasting a move higher and distribution in to that move, "Buy the rumor, sell the news".

 The 15 min went from in line to leading negative, this is a good start toward an equity short, but there needs to be a larger reversal process that just isn't there yet for an equity short.

The 30 min chart is getting there too, but for now I'd stick with the shorter term, leveraged position with puts. I'll have an eye on this one for a possible entry whether for the longer August or maybe even September as well as shorter term weeklies if the set up is there.