Is your account running on Double AA batteries? Try Apple ($AAPL) and Amazon ($AMZN) (October 05, 2020)
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I want to look at a couple of “A” stocks here, Amazon ( NASDAQ: AMZN ) and Apple ( NASDAQ: AAPL ). The reason is because both of them are starting to get frisky here. We have had this big sell-off here; I am not going to take you through a walk down memory lane, I don’t have that much time and you don’t have that much patience.
The bottom line is, last Thursday Amazon ( NASDAQ: AMZN ) printed at 3224.00. That is just very slightly above where it is now and so I am looking at this; I will make this real quick. I think a move above 3224.00 would be a good buying opportunity. There I said it, that’s what I think; it’s a good buying opportunity.
Apple ( NASDAQ: AAPL ); we have kind of a similar deal here. You will notice that the red line here, that’s the 50-day moving average. Amazon ( NASDAQ: AMZN ) and Apple ( NASDAQ: AAPL ) are both right there. Apple ( NASDAQ: AAPL ), the 50-day moving average is still in a pretty nice uptrend. Amazon ( NASDAQ: AMZN ) is a little flat but it doesn’t matter, it’s all good.
We have a similar thing here; the stock trades above 117.72, that’s the high for last Thursday. The same prognosis, you are buying the stock right there and then don’t let the stock come back below today’s intraday low of 113.50. So let’s say you are buying there and you’ve got about a 3.5 percent stop on it. You can stretch it down to below Friday’s intraday low so give it, say, 5 percent room, I think that will work.
And a similar thing with Amazon ( NASDAQ: AMZN ), if it does run up there I wouldn’t hold it if it fell back below, say, 3140.00 that would be a pretty tight stop on that as well. By the way, on Amazon ( NASDAQ: AMZN ), for you gunslingers, you know what works really well? Weekly options, they are plenty liquid. That’s all I have to say about that.
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