Amazon (AMZN) is stuck in jail, looking for a bail bondsman. (November 28, 2016)
AMZN
Black Friday, Happy Saturday, Oh my gosh Sunday, and Cyber Monday, the data is coming in and a lot more people are buying stuff. The problem is that the money that they are spending is less then expected. The consensus is that is because there are deeper discounts. What the means in the big picture, honestly, I have no idea, and neither does anyone else. It just is what it is. Amazon ( NASDAQ:AMZN ) is down 1.5 percent. Not a big deal. I don’t think this is a top. This is just one of these holiday run up things and then a little pullback, and the pullback is actually, relative to this here, fairly light volume.
So here is the way I am playing it: I am not doing anything here. This stock has been trending sideways for quite a while, you can see it here on the daily chart, it is choppier here. I think if you are buying or shorting Amazon ( NASDAQ:AMZN ) today, you are doing it because you just don’t have anything else that you can think of doing and you want to do something. This is trapped in between 800.00 and 720.00 or the 200-day moving average. So as long as this stock is in this box I think you want to stay away from it. But you also need to just realize this has an upside bias here. Look at the 200-day, 50-day, certainly it has flattened, it is flattening, now it is basically flat. This is what the moving averages look like when you have a stock that is in an uptrend and then starts consolidating for quite a while. There is nothing remarkable or unique about this chart, nothing at all. The reason that I am covering it is because it is a pretty popular stock, everybody has got an opinion on it.
What my suggestion is, I don’t think you have to wait until 800.00 to buy it, although close to it. I would say this high of 792.40 is really where resistance is. In fact I am just going to set an alert here (792.00 for 1 month and just for I hour. later). I think this is really where resistance would be. And as long as the stock hasn’t pulled back too much more, if it reverses and hits that 792.40 level I think THAT is when you buy the stock and look for more upside. But for the time being I think you really just want to let this stock rest and let it do what it is going to do and not get too involved in it.
So it is really just a function on this, waiting for the stock to do something that allows you to be opportunistic rather than you deciding that you want to make a certain trade on a stock. And then by golly, one way or another, you are going to find a reason to make that trade. If you are looking to make a trade on a specific stock, trust me, you will be able to find a reason. There is always a reason out there to buy or sell any stock at any given time if you have no rules at all, just point and click. But if you have rules stick to your rules. Because if you don’t stick to them why have them? Actually you don’t have them.
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