Amazon (AMZN) hits a new all-time high. Too late to buy? Nah.
Discussed in this article: Amazon.com Inc. ( $AMZN )
I want to look at Amazon ( NASDAQ:AMZN ) today. The market’s been really rockin’ and that is not going to change, because, among other things Janet Yellen’s comments, and it’s pretty well recognized now, that she is, as they say, “dovish”, meaning that she’s really lax with monetary policy. Hey, lets just spend more money almost as if we have it, in fact if we don’t have it let’s just print more, all it is, is entries on a ledger.
And so because money’s going to continue to be so cheap for the foreseeable future for you and your kids then we’re seeing equities just kind of melt up. One of the ones that’s doing really well is Amazon ( NASDAQ:AMZN ) here. I want to look at it on the weekly chart and you can see this stock has been in a multi-year uptrend. It would be nice to have bought it at $35.00. I wonder if anybody who bought it there is still long $365.00 here?
The stock, in my view, is moving higher; it is in a little consolidation phase right there, definitely a little consolidation phase. It’s tough to buy at these levels, you can see the stock broke out, it’s at a new closing high here, I think that’s a new closing high, to be honest with you I need to check. Yes, that’s right, remember back here Amazon ( NASDAQ:AMZN ) split like three different times in the late 90’s, and the stock just went berserk, so I forgot whether it went up higher. But anyway, the company continues to not make money and it’s slowly taking over the world.
So I think this is a stock that you want to own. It’s very difficult to buy it here at $367.00, but if you’ve got a longer time horizon, I don’t look at this and say, “Wow, this is the top right here,” it is overextended if you took a little bit a stock here, then if the stock continues to move at least you’re in, that’s a good thing.
But you also have to recognize that the stock gets extended a certain distance above the 50-day moving average and it tends to pull back a bit, that’s what it’s done here before. It just pulled back here, now it’s moving to get extended again. I’d say maybe on this one, you probably have another 10 maybe 15 points if it keeps moving up before there’s and an opportunity to buy through a pullback.
So I would just suggest watching Amazon ( NASDAQ:AMZN ). If you want to get involved, that’s great, it’s not your best buy point, but this is a pretty nice trend.