AMZN Position Management

If I'm correct, AMZN reports after the bell today, I recently added to an AMZN core short position because AMZN was in the area I had hoped to see.

I hate holding positions in to earnings, but AMZN is a longer term position so eve a short term move in earnings wouldn't trouble me too much unless the market was giving strengthening signals. Furthermore I never react to after hours price action with earnings, it's typically retail and you don't know what the pros will do until regular hours when there's liquidity.

I don't see any signs of a leak in AMZN either way, this is an example of what I see...

 One of the key signs of an earnings leak is an area of unusual accumulation (often at odds with the market at the same period) and pretty close to the earnings date, one year we caught GOOG 15 mins before they closed/reported.

This area from yesterday was just part of the same look in the overall broad market and therefore doesn't stand out.

This longer chart does show a fairly large accumulation area, this is the one I suspected was designed to lift AMZN above the $300 mark where retail buyers would step in with some size.

However that accumulation period is so far back it wouldn't be relevant to a leak. The price move off that accumulation period is about right in size, considering the size of the accumulation zone, the resulting price move is proportionate and about what I'd expect it could support, the more recent signals as AMZN made a jump higher where the last add-to position was added shows a negative divergence which is about the right time and place judging by the size of the accumulation period.

I hate holding during earnings, it's a wild card. Remember though it's not whether they beat or miss, it's guidance, it's not what they did, but what they are expected to do moving forward. I'd much rather have evidence of a leak, but barring that, I don't have objective evidence to exit the core short.

Good luck to all, and unless it's really advantageous to you to act in AH, I personally always wait for normal hours.