Could AMZN goad the broad averages toward new record highs without any help from AAPL? We may find out soon whether such manipulative ‘triage’ is possible if the stock pushes past the trendline shown in the chart. It comes in around 1730 and could be hit by week’s end if buyers maintain the steep trajectory that has obtained since Dec 24. The stock has risen nearly 30% since then and seems capable of wilding sprees even when the shares of Apple, long our number one bellwether, look like hell.
There are two important peaks below the trendline, and a rally exceeding them would be setting up a more likely assault on it. You can be certain in any case that the Masters of the Universe are planning to short-squeeze AMZN for all it’s worth. As we’ve seen in the past, it doesn’t take much leadership to keep the broad averages buoyant — only a FAANG stock with a mind to ignore or forget bad news. Such forgetfulness could conceivably help rejuvenate the shares of Apple and Facebook, which have gotten nothing but bad press over the last several months. Whatever happens, we should put aside doubts that stocks are capable of shrugging off an incipient recession and doing something really nutty. At the same time, we should remember that any bear rally worthy of the name is going to do whatever it takes to convince us it’s capable of achieving new all-time highs.