Think it’s too late to sell Amazon (AMZN)? Think again. (June 03, 2019)
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Let’s get on to this trade with Amazon ( NASDAQ: AMZN ); you think it’s too late to sell Amazon ( NASDAQ: AMZN ) after all look at this; the stock is down almost 15 percent. At one point today it was 14.5 percent from the high; Oh my gosh, this is a great buying opportunity for Amazon ( NASDAQ: AMZN ). No, au contraire mon frère, it’s not a buying opportunity for Amazon ( NASDAQ: AMZN ).
I think you can still sell it. I’m not really sure that I would short it and yes I would say it is setting up for a little oversold bounce, but, look at the weekly chart for more context. This looks really toppy to me. First of all, this was the high. This was not the high. I look at this as a double top; that’s not to say that this is going to happen but what this is to say, at least from my perspective is, this isn’t going to happen.
You have got the government all ticked off at Amazon ( NASDAQ: AMZN ) for a lot of different reasons, some of then valid, some of them not. None of them I care to comment about because I am not an expert in that stuff. I just know that when you’ve got the government knocking on your door saying, “Hi, we’re here to look around. We’ve got an issue with some of your stuff,” that’s a big problem; because now we know that the folks with the highest IQs are not working for the government, we see this every day, but they do have more power than the folks with the high IQs and so that’s a problem.
I look at this on Amazon ( NASDAQ: AMZN ) and I can see this stock very easily, VERY easily falling to 1500.00, which is 200 points from where it is now. And so I don’t think it is too late to sell Amazon ( NASDAQ: AMZN ). Would I short Amazon ( NASDAQ: AMZN )? No, I don’t think you can short safely at all in this market. You really can’t short safely in any market but certainly, with Amazon ( NASDAQ: AMZN ), this is not a market that you want to be shorting because it is really “whippy”. What you want to be doing is exchanging your stock for cash. Have cash on the sidelines waiting for the right setup, the right opportunity. This isn’t it.
If you are looking at Amazon ( NASDAQ: AMZN ) as a buying opportunity I am going to tell you right now, here’s what’s happening with you: You have been waiting to buy Amazon ( NASDAQ: AMZN ). You have been waiting, you’ve been waiting, you have been waiting, you really want to buy Amazon ( NASDAQ: AMZN ) and so you are seeing things in the chart that aren’t there.
This is a great opportunity to buy Facebook ( NASDAQ: FB ); Wow! A pullback to the 200-day moving average, this is my chance, I finally get Facebook ( NASDAQ: FB ) at a discount. Guys, they’ve got the government climbing all over them too. It’s not to say the stock is going to zero, it might go to 200.00, we don’t know this. But we know there is a whole bunch of resistance, a whole bunch of supply right overhead. So if you are buying this buy it at 164.00 sell it at 170.00, thank you very much. But generally speaking you are not buying this
Google ( NASDAQ: GOOG ), I don’t think so. These are broken stocks now; these look like mountain peaks that you want to climb. When you see mountain peaks like this and these stocks are down in the valley, no, that’s not what you want.
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