AMZN – Amazon (Last:1503.63)

Lately, I’ve been treating all ‘mechanical’ signals for vehicles tracked in the ‘touts’ list as real trades, although my recommendation is to paper-trade these set-ups until you are confident using real money. I will usually offer my opinion on the trade in advance by rating it on a 1-10 scale.  Anything above 5.0 implies that, as far as I’m concerned, the trade has at least a 50% chance of getting from the green line to the red, where you should take profits on half of the position (originally assumed to be 400 shares or four contracts).  In this case, if AMZN trips a mechanical ‘buy’ signal by falling to the green line (1421.87), I would rate the trade 7.0. A stop-loss at 1400.25 would apply, meaning initial risk would be more than $2100 per round lot. There are ways to reduce this exposure by 90% or more — mainly by using ‘camouflage’ entry set-ups on charts of lesser degree. Many in the chat room are experts in this tactic, so I’d suggest staying close to the discussion if you want to learn more about it.  One more thing:  If you are paper-trading ‘mechanical’ set-ups, do them ALL to avoid ‘negative selection’, the paradoxical outcome of trying to cherry-pick Rick’s Picks trades.  Not all of the trades are going to work, but as you will see for yourself, on average they will make money — often with far less effort than you might have believed possible.  You needn’t trade a $1400 stock to make a living at it; the same ‘mechanical’ set-ups work just as well with $40 stocks.  Get immersed in them, initially with play dough, and you will be amazed at the results. They offer the best path I know of into the world of successful trading. _______ UPDATE (April 16, 5:15 p.m. EDT): Cancel the mechanical bid, since AMZN’s rally has grown too tired and balky to rate a ‘7’. At the moment, the trade is looking more like about ‘5.8’ — still do-able but not especially appealing. ________ UPDATE (April 17, 12:27 p.m.): The stock took a maniacal leap this morning without having dipped to the canceled mechanical bid. AMZN appears bound for a short-term top at 1506.94 (60-min, A= 1352.88 on 4/4). ________UPDATE (April 17, 6:21 p.m.): The stock’s $63 surge topped at 1507.19, just 25 cents from the target I’d flagged above. Any higher and AMZN will be magnetically drawn toward the challenge represented by the ‘external’ peak at 1575.97 recorded on March 27.