ZS Trade on Sep 12, 2019 09:33 from Cklamb: Tradervue User Stock Trades.

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Intraday Fundamentals
• 05:38 AM EDT, 09/11/2019 (MT Newswires) -- Shares of Zscaler (ZS), a cloud security group, traded sharply lower late on Tuesday as earnings forecast for the fiscal first quarter and the full year 2020 missed market forecasts, with investors overlooking the beat in the final three months of the financial year after costs weighed on statutory results.
• The company said in its earnings statement late on Tuesday that revenue surged by 53% to $86.1 million during the three months that ended July 31, from $56.2 million a year ago and also above the $82.83 million average analyst estimate compiled by Capital IQ. Group turnover increased as billings soared by almost a third.
• Given the stronger sales, Zscaler was back in the black. Its adjusted earnings per share rose to $0.07 from a proforma net loss of $0.01 per share a year earlier and were comfortably above an earnings forecast of $0.02 per share.
• On a statutory basis, the company, however, reported a net loss in the fiscal fourth quarter. While the net loss has narrowed from a year ago, the firm's costs and total operating expenses have grown almost as fast as quarterly sales.
• Late on Tuesday, Zscaler expanded its top management team with the appointment of Dali Rajic as the chief revenue officer. Rajic, who has almost 25 years of experience in sales, has been given global responsibility for the firm's revenue growth and go-to-market strategy. He was most recently the chief customer and revenue officer at AppDynamics.
• "Our strong fiscal 2019 results demonstrate our ability to drive growth and profitability while investing in our business," Chief Executive Officer Jay Chaudhry said in the statement.
• Looking ahead to the first quarter, the company expects earnings per share to come in the range of $0.00 to $0.01 on revenue of between $89 million and $90 million, lagging both the guidance for earnings of $0.06 per share and revenue of $97.5 million, as per estimates compiled by Yahoo Finance.
• For the full year, the company anticipates net income per share of $0.12 to $0.15 on sales of $395 million to $405 million, missing the outlook for earnings of $0.19 per share but in line with expectations of group turnover of $402.6 million, as per estimates compiled by Yahoo Finance.

Technicals
ADV 2.43 m RVOL 2.59 ATR 3.75 Short 6.93% Inst Own. 34.10%

Daily

Hourly

Intraday

Trading strategy
• Technically speaking this would fill a gap from march and fill 50% of this gap if this would mave back to 55 over the next few days. The action yesterday set this in the same range as some consolidation before it gapped past 55$ in early March.
• Some of the price action in August suggest that some of the earnings report was priced in before the realease. There is still the possibility of profit taking
• A hold above 51.35 would set this up for a 50% gap fill, with a stop at 51 ish target 54.50
• Consider along scalp at the opening if it begins to bounce off 49.50 or .60, opening trade, hard stop at .25. Take up upside momentum and try to set at breakeven
• If this flushes below 49.60 .50, then hold for a long at 49 and be prepared that it may base more around 19.15
• If 49 does not hold, short into 48.25 on a tight scalp risk and follow with the stop.
• Long if this can start to hold 50.20 with a target of 51.00
Reading the Tape
I saw a bid hold thirty for a few seconds on the first trade and triggered while watching it hold.
I followed the momentum of the tape on the second trade as well. I did feel that I was a little late as it dropped .70 though.
Trade Management

Trade Review
• Just bone headed opening trade
• Most of my biggest losses at the opening is when I try to jumped a dip or short a rip when I have a bad bias
• Take the trade, but cut the lose quickly there was as little as 11 cents here not a 1.20.
• Bone headed
• The second trade was acceptable attempt as I believe that most time that goes to the next level of support. I may have missed something at .40 though.
• My bias for a 50% gap fill on the daily was pretty strong.
Preparation 7 10 The am prep and game plan were there and this was my main focus again today
Hard Work 3 10 I saw what I wanted to on this trade for sure! I did not analyze what was going on very well at all.
Patience 2 10 Complete failure

Plan 8 10 Yes actually…
Discipline 1 10 Nope.. Idid not follow the plan

image


Execution detail:

Date/time Symbol Side Price Position
2019-09-12 09:33:29 ZS buy $50.360 long
2019-09-12 09:33:29 ZS buy $50.360 long
2019-09-12 09:42:44 ZS sell $49.158 0


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