AMZN Update

Sorry this is such a large update, but I want you to see everything I see, well at least the most important stuff.

 This is the AMZN daily chart, these are strong divergences. If you look closely at this chart you can learn a lot about the 4 stages, the interference of Central Bancsters, how long a solid base really takes to put together and why distribution in to higher prices over a long period is necessary, in short you can learn about how and why Wall Street operates as it does.

The flat range is boring for traders, its where they let their guard down, I call it dangerous and describe it as, "The kids in the room next door being a little too quiet, YOU KNOW THEY ARE UP TO SOMETHING"

One of the scans I'm working on for 3C divergences is flat ranges like 2004-nearly 2007, that's a LOT of accumulation in AMZN and 3C shows it clearly. The bigger the base, the bigger the move it can support. 2007-2008 are probably just victims of the general market tone. 2009 is where we saw MASS ACCUMULATION among almost every risk asset as QE1 went from MBS only to adding Treasuries around March of 2009.

There was distribution @ 2011, I don't know why, but it knocked price down and was accumulated again in 2012. The relative divergence between any point in the past and price/3C levels now show a large relative negative divergence, or you could say there's much less underlying capital flow in AMZN at higher prices than at significantly lower ones, distribution.

The yellow area is the 3 target zones I waited for before initiating/adding to AMZN short positions, I believe one was > $282.50, another around >$287 and finally the psychological level of $300. THIS WAS/IS A PURPOSEFULLY "PHASED IN POSITION" and is a "core short".

 4 hour shows the resistance range in yellow and why I waited before adding to AMZN because the range is so clear, it's certain technical traders will chase a breakout which gives institutional money the two things they need to sell or sell short here, higher prices and demand to absorb their supply.

3C and price are as they should be at the green arrow, before that you can see the preparations being made to accumulate AMZN below the range so it can be sold above the range, the same thing I'd do, but faster because we deal with 100 lot positions, not 100k or even million shares.

As expected, above the range where retail will bite, there's a leading negative divergence and very fast, VERY DEEP, nearly to new lows on the chart despite price just off the highs.

 60 min, again the range to look for a break above and distribution on that break.

30 min shows the process, as I frequently say, the bottom reversals are tighter than top reversals, but the 3C divergence during the top area is what is important.

I just showed you distribution on 30, 60 min, 4 hour and daily, this is the big picture. THIS IS WHY I HAVE PHASED IN AND AM PRETTY MUCH DONE WITH LONGER TERM PREPARATIONS, THERE'S ROOM  TO ADD HERE AND THERE, BUT FOR THE MOST PART I'M DONE.


Now the near term trade...

 15 min and the approximate price levels that were posted as breakout areas to look for and areas to look for distribution or head fake moves above.

Short term...

 AMZN broke below a level where I can guarantee stops without even looking at the order book, $300 which is a psychological magnet.

Look at the volume (stops triggered) as the bar closes at $299.97, this is how predictable technical traders are. This also gives anyone who needs volume, extra supply to accumulate,

 The 2 min chart on the break of $300 today, as I'd expect, it looks like clear accumulation of the cornucopia of stopped out shares.

 The 3 min chart also looks "somewhat" similar to AAPL before earnings.

Accumulation on the 5 min chart is not as sharp, but for a shorter term move I wouldn't expect it to be. Red areas are 3C distribution signals, white are 3C accumulation signals.

The 10 min chart is only relatively positive as it hasn't made a new low with price, but more importantly than that, it's leading negative which is like scissors to paper in "paper, rock scissors." Short term it can move like Monday and Tuesday's AAPL short term charts did, but longer term the probabilities are to short in to any price strength.