Although it’s possible to infer that Friday’s psychotic lunge was a last gasp for Google, the technical case for a major top in Amazon is less persuasive. Specifically, the stock looks like it could reach 657.17, a Hidden Pivot resistance that lies 37.72 above Friday’s peak, before it goes into hibernation. Both the pattern and its target have been corroborated by the precise interplay between the shares and the 554.09 ‘midpoint pivot’ (aka ‘p’). The stock pulled back three times from that ‘hidden’ resistance before finally pushing decisively past it. Moreover, the running start that preceded Friday’s leap came almost precisely from a low at p (554.09). Although I expect at least another 3-5 days of weakness before AMZN could even attempt to rally anew, a pullback to p2=605.63 that meets our criteria for a ‘mechanical’ trade could provide an excellent opportunity to get long ahead of a possible climactic thrust to 657.17. _______ UPDATE (October 27, 1:33 a.m.): The psychotic spasms at 4:15 a.m. two nights in a row have killed my interest in forecasting the stock for now. _______ UPDATE (October 27, 9:35 p.m): The stock tripped a theoretical buy signal to as high as 672.42 on Tuesday when it touched 613.67. ‘Mechanical’ bids may be possible from x, p or p2, but you should attempt this only if you are familiar with the tactic. If and when the midpoint pivot at 633.26 is decisively exceeded, p2=652.84 would become our minimum upside projection. ______ UPDATE (November 11, 10:45 p.m.): I’ve been extremely bullish on this stock, but it appears to be in the grip of lunatics. Today’s thrust somewhat exceeded the 672.42 target given above, and the stock now looks bound at least slightly higher, to 677.46. If that ‘secondary’ Hidden Pivot is breached, however, look for more upside to at least 687.52.
