Hours before the opening bell, on thin overnight volume, DaBoyz short-squeezed this pungent wad of sucker-bait up to the 1940 resistance everyone’s been talking about. It’s tempting to think that the modest breach of the resistance — the intraday high was 1943.75 — will turn into a trap that will snare bulls and bears alike. With Monday’s move above 1940, the futures have opened a more or less unimpeded path to last autumn’s highs near 2100. The prospect is enough to get bulls’ juices flowing, but also to put the fear of the lord in bears who for good reason started shorting this flying pig below 1900. Are near-universal expectations of a runaway short-squeeze sufficient to make it not happen? It’s something to consider, since the squeeze scenario seems almost too pat. But I’m not going to let gut feelings get in the way of technical signs that suggest otherwise. See today’s AMZN tout for the cold logic behind my assumption that the rally is likely to continue.
