I flagged a rally target at 1810.47 last week that put AMZN on a ‘mechanical’ buy signal at 1646, stop 1591. The new chart shows a somewhat higher target at 1845.99 with a buy trigger at 1654.54. The latter trade was signaled on Friday and slipped well beneath the water line before the close, but the signal itself is no less impressive for this. We can paper-trade here or use ‘camouflage’ to get aboard using real money. However, if the gambit works out like so many other mechanical trades we’ve done in the past, it will demonstrate yet again that fearsome, violent price action is where the mechanical entry performs best. The ostensible reason AMZN sold off was a Q4 earnings report with a few dark spots, but they seemed calculated to part widows and pensioners from their shares at fire-sale prices. I’ve been bearish on the stock market and AMZN but am less so at the moment because of the contrived viciousness of Friday’s selloff in this stock._______ UPDATE Feb 6, 5:43 p.m. ET): Liftoff is taking way too long, making the mechanical trade more labor-intensive than we should prefer. If it pans out anyway, we can file it under “Mechanical Miracles,” but let’s not devote much more attention to it in the meantime.
