Six weeks ago, with Amazon trading around $600, Rick’s Picks drum-rolled a $719 rally target that has served to keep us on the right side of the move. The stock sold off twice during that period, respectively by 30 and 34 points. However, it was plain to see that the moves were corrective, since even on the hourly chart neither of these swan dives exceeded any prior lows of significance. On Tuesday the stock gapped up to a new all-time high at 724.23, presumably bound for the 755.20 target shown. AMZN will have to pop decisively above the red line (see inset), a midpoint pivot, before it can become an odds-on bet to reach 755.20. That hasn’t happened yet, but if and when it does, we can use any of three Hidden Pivot levels — x, p or p2 — to get long. Stay tuned to the chat room for guidance in real time, since there are usually at least a half-dozen ‘Pivoteers’ in the room who know how to execute this type of trade. In the meantime, we’ll continue to use AMZN as a bellwether for the stock market as a whole. If it’s going to 755.20, you can bet the broad averages are headed higher as well. The dark side of the story is that AMZN’s spectacular rise correlates with the death spiral of brick-and-mortar retail in the U.S. Someday we may wax nostalgic over the hassles we endured driving to the shopping mall. ______ UPDATE (June 12, 4:33 p.m.): Support at the 721.98 midpoint Hidden Pivot has given way, and now AMZN may have to grope its way down to the green line at 705.87 in search of traction. Were that to occur, the stock would become a ‘mechanical’ buy, stop 688.75.
