The investment signal for Zillow (Z) to hold is rooted in the current market sentiment, particularly in light of the significant increase in put options purchased on the QQQ, indicating bearish expectations among investors. Thetradingfraternity highlighted that last Friday saw the highest volume of puts ever purchased on the QQQ, suggesting a widespread belief that the market may decline further. They noted that the upcoming Consumer Price Index (CPI) report is crucial, with a threshold of 4% being pivotal; a reading below this would be viewed positively, while anything above would increase bearish sentiment. The speaker mentioned their own positions, including a small August play for Palantir and existing holdings in Zillow, which have fluctuated between break-even and gains of 20% to 50%. This context implies that investors should closely monitor the CPI results and market reactions, as these will influence the viability of holding or adjusting positions in underperforming stocks like Zillow. For those tracking this investor, the focus should be on the potential for market rotation and the performance of lagging stocks in response to economic indicators.
Discloses having a small August play for Palantir and original holdings in Zillow.