Last week, trader Todd Gordon added to his place in scorching semiconductor inventory Nvidia.
This week, he's wanting to unload two of his prime performers that he mentioned have run their course.
"Two stocks that you might find surprising are going to be kicked out [of my portfolio]," Gordon, founding father of TradingEvaluation.com, informed CNBC's "Trading Nation" on Wednesday. "The first one that I want to cut, unbelievably, is Zoom Communications. We've had a great run in it. I don't like the way the stock is trading here from a technical point of view. From a fundamental point of view, it's really overvalued."
Zoom Communications trades at 127 occasions subsequent 12 months's earnings, properly above the 48 occasions a number of for the IGV software program ETF. Gordon added that the inventory's latest pullback pushed it beneath its 50-day transferring common, and he sees the chance of it retesting its 200-day at $303. The inventory at the moment trades at $376.
Gordon is unloading his total place — 15 shares — of Zoom.
"The other one that I want to get rid of is Beyond Meat. Again, a very, very overvalued stock that is losing its strong technical position," Gordon mentioned, pointing to its rangebound buying and selling in latest weeks. "It can't seem to get through the $144 mark. I hope Beyond comes back. I like trading the stock, but I won't get back in until we get back above $150 in a momentum environment."
Beyond closed Thursday slightly below $137 a share. Gordon unloaded his 50 shares of Beyond on Wednesday afternoon.
As he exited Beyond and Zoom, Gordon added a place in Spotify.
"I like this fundamental story behind it. I like the technical picture here," he mentioned. "They're making a big move into content, streaming content, diversifying away from music, which I think they did a really good job fending off all the streaming music services, Apple Music included."
The inventory has seen a "beautiful uptrend" over the long run, encountered some consolidation and a pullback and will resume its uptrend from right here, Gordon mentioned. He purchased 25 shares of Spotify.
Disclosure: Gordon holds shares of Spotify.
based mostly on web site supplies www.cnbc.com