Amazing Amazon (AMZN) — buying or selling? (April 24, 2014)
Discussed in this article: Amazon.com Inc. ( $AMZN )
I just want to do a quick video on Amazon ( NASDAQ:AMZN ). The company came out, announced some pretty good earnings, the market liked it, although let me show you something, intraday, the 5-minute chart, 107 thousand shares. Some guy named Jethro was out here buying the shares because he wanted to get it before everybody else did, and he did get it before everybody else did. He was lucky enough to buy it at 355.00 and lord knows you’ve got to be happy buying a stock at 355.00 when about two-minutes later you can buy it $15.00 cheaper. My point is, and I’ll say it again, you’re stupid if you’re trading after hours. Now, if that offends you I’m sorry, you’ll learn to live with it; it shouldn’t offend you if you’re one of the people who consistently make money after hours.
Here’s what you should think, “Well yes Dan, most people who trade after hours are stupid and I give thanks for those stupid people every day, because I take their money. The point is, if you’re trading after-hours you’re either the sucker or the person on the other side of your trade is the sucker. If you’re wondering whether the person on the other side of you’re trade is the sucker the answer would be no, because you would know if the person on the other side of your trade was a sucker. The first move is generally wrong, so just be careful about that.
Now with Amazon ( NASDAQ:AMZN ), you know I like Amazon ( NASDAQ:AMZN ), I’ve been a Prime member for years, love it, I will buy it a toothbrush and have it shipped to me because shipping is free. If I want a toothbrush and I don’t feel like going to the store fine, I’ll go without brushing for the next couple days and then have it delivered to me. The point is, these guys have a lot of good stuff going on, they charge in a little bit more for Prime now, as I’m doing this nobody knows how much that has increased their first-quarter earnings, how much it’s impacted their first quarter earnings. This is what I know, the 50-day moving average had been support; this time it was resistance. This stock has gone from basically close to 300.00 up 10 percent, up $50.00, between the low here and where the stock’s going to be trading tomorrow.
So this is a rally, I’m not predicting this, that’s not what I do, this is a rally that will likely be sold into tomorrow because it’s Friday, and that’s what traders do when a stocks moved up so much. I want you to be careful about buying at the open, I would be very careful about buying at the open; in fact I would not be buying at the open. If you’re long, great job on the gambling, I would sell at the open, take your profits, you can always get back in. I’m looking for the stock to probably be closing around the 50-day moving average or below it. I can’t really see it trading up above it for too much. So just be careful on Amazon( NASDAQ:AMZN ), make sure you have your stops set, and just don’t do anything stupid.