AMZN Update

AMZN is a partial (short) position that were we waiting for a set up to take place that consisted of a break above $269 first since that was clear resistance as well as a new high.

The Jan 14th AMZN update lays out the scenario pretty well.

In essence we are looking for the move above $269 to be revealed as a head fake move and use that price strength to add to the short (which was a phased in position from the start).

 The yellow arrow would be the head fake move, of course a move below that former resistance would help create a bull trap.

I think we had (before the move up) and have enough evidence to say it's a very high probability head fake / Bull trap move. I'd like to look at adding, but I first want to take a look at the broader market and leading indicators again as I'd prefer all were in line. I will say as I often do, if I was forced to make a decision right now about adding to the AMZN short or missing out totally, I'd add right now, but that's not the case or situation, but I think it helps give you an idea of how I feel about it.

 30 min was negative before the move even came about, that's why we were waiting for the breakout and the clear resistance zone made the breakout move an almost certainty.

 The 10 min chart is negative in to the breakout as well, there is a little area (white) that I'd like to look at closer and see if anything evolves from there as far as timing and possibly a better entry.


The 5 min chart looks pretty ugly as do all of the intraday 1-3 min timeframes, none seem to support that 10 min chart, but like I said, I'd prefer a market update and another look at leading indicators before filling out the position there.