Like the stock market itself, Amazon seems content to screw the pooch while investors wait for a bullish sign. What kind of sign? Don’t ask me, since I’m just a permabear without the innate ability to imagine truly bullish news. But neither can I imagine the chart pattern shown failing to produce a second rally leg (which I’ve sketched hypothetically, using a true Hidden Pivot target that lies 12% above). Whatever happens, the high-priced ‘lunatic stocks’ favored by institutional investors have been leaden for months, and the broad averages aren’t going anywhere without them. Do we dare sell straddles while we wait for something, anything to happen? That’s just looking for trouble, as far as I’m concerned, so we needn’t kick ourselves a month from now if it turns out to have been the best bet we could have made. ______ UPDATE (June 21, 4:00 p.m. EDT): DaBoyz got a little too greedy on Friday, setting up a bull trap that allowed them to unload stock on the opening bar for $12 more than lows engineered later in the session (see inset, a new chart). Buyers are apt to be skittish after this brush with Wall Street’s back-alley thugs, so don’t expect AMZN to make much headway as the new week begins.
