Friday, March 23, 2012

AMZN-potential trade...

 I'm not 100% sure how to play this because a head fake move to $200 would be ideal, I love centennial marks, there are so many limit orders there that it draws price to them. However today there's also relative weakness in AMZN's performance (not percentage gain, but intraday performance). As you can see there are a couple of levels of resistance we are pretty much at right now.


 The Bollinger Bands are squeezing which leads to a highly directional move, a pop up to $200 and I'd be interested in shorting it there as long as the underlying trade continues to deteriorate, a break down may also be interesting, it depends on whether it breaks down in sync with a market break.

 Today AMZN made its highs early and hasn't made a new high with the market, not good relative performance.

 The 30 min chart has confirmed the move up, but today weakness is developing there.

 It is worse on the 15 min chart as you would expect.

Still worse on the 5 min chart which is just above a resistance level, but there are some higher.

This reminds me of the GLD short, I think I'd try to play it the same way, see if we can get a head fake move to $200+ and loo at shorting it there like we did with GLD.

I'd set some price alerts so you don't miss this one.

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