The weekly chart shows AMZN on track to hit 875.20, a $35 move from here. If so, it would be bullish for the stock market as a whole, since Amazon’s global empire is arguably the most important bellwether for the U.S. economy. We have been trading the stock mainly via ‘mechanical’ entries, but not on charts of more than hourly degree. Trading the weekly chart would require initial risk of about $4000 per round lot. However, there have been recent opportunities using Hidden Pivot entry tactics to cut that down to as little as $28 theoretical. One general approach has always paid off in this stock: buying the dips. We shall continue to do so, but not ordinarily by way of day-in-advance guidance such as goes out to subscribers each night. If you’re keen on learning how an $800 stock can be tamed for day-trading, check out the recording from last Wednesday’s tutorial session. You should also tune to the chat room and The Scoreboard for tradable ideas in real time. _______ UPDATE (Feb 6, 10:57 p.m.): Last week’s earnings shakedown is now bearishly impulsive on the daily chart, but I don’t see this as consequential, In any event, the 875.20 rally target given above is still theoretically in play. We’ll wait till the stock pulls back to p=792.62 (A=682.11 on 6/27/16) before we think about jumping in. _______ UPDATE (Feb 8, 10:18 p.m.) No pullbacks to speak of so far, so we’ll remain on the sidelines until such time as a low-risk entry opportunity materializes. _______UPDATE (Feb 13, 10:58 p.m.): This stock has been money-in-the-bank for every fund manager who has ever owned it, and that’s why any sell-off, particularly on earnings news, has always turned out to have been just a brazen shakeout. The last one, on February 3, was nasty, although not quite as nasty as the one in November that also was catalyzed by a deliberate and opportunistic misinterpretation of earnings news. Note that my Feb 8 update (see above) did not blink even though AMZN generated a bearish impulse leg of daily-chart degree on the news. Just keep this in mind the next time major league’s Dirtballs repeat their little dog-and-pony show, stealing shares dumped by less savvy investors who’ve been scared out of their wits. For trading purposes, our longstanding target at 875.20 remains valid, but more immediately you can use the target at 857.29 shown in the new chart as a minimum objective for the near term.
