AMZN stopped just shy of daunting resistance on Friday following a gap-up opening a day earlier to within inches of it. Actually, there are two resistance points that could conceivably impede the stock’s wilding-spree-on-steroids: the psychologically important 1000 mark, and a Hidden Pivot resistance slightly above it at 1000.41. My gut feeling is that neither is likely to contain the rally, at least not for long, if for no other reason than that 1000 seems like too obvious a place for the stock’s nearly nine-year bull market to end. As always, we need only get AMZN right to get the entire stock market right, since the 1000-pound gorilla of the retailing world is the most important bellwether of them all — a company that sells actual things to the entire planet and which invests enormous sums in infrastructure to do so as efficiently and profitably as possible. _______ UPDATE (May 30, 7:57 p.m. ET): Today’s modest rally very slightly exceeded the 1000.41 target, but with this stock it’s always a good idea to have a higher price objective in mind just in case. I’ll recommend using 1018.73 for this purpose, and here’s the chart. Notice the very interesting price action at the midpoint Hidden Pivot resistance: two head-butts to confirm the pattern followed by a blow-through late in March that shortened the odds of a move to at least 1018.73. You can try shorting there using your own plan, but I’d suggest a stop loss no wider than $2.50 in the underlying and put options with no more than three weeks left on them. _______ UPDATE (May 31, 7:11 p.m. EDT): The stock’s sleazy handlers performed an impressive feat Wednesday, trapping bulls, and then bears, in the first hour with nasty feints in both directions. AMZN was on the rise at the close, but it will be bucking strong headwinds into week’s end from a punk-looking Nasdaq. Regardless, the 1018.73 target will become an odds-on bet if the close is above 1000.41.
