The rally since the lows has been like a runaway freight train, or maybe more like a charging bear. Speaking of, this is starting to smell like a bear market rally and today was the ideal spot to lay out some call credit spreads into Fibonacci and Elliott Wave resistance.
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Plan Your Trade, and Trade Your Plan,
Todd Gordon
Markets are getting crushed in here and tech continues to lead us lower. Join me on the trade desk as I take you into our option positions in Apple and Amazon and with Fibonacci analysis, we analyze just how low these tech giants can fall.
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Plan Your Trade, and Trade Your Plan,
Todd Gordon
In the first 30 minutes of trading today, Amazon.com Inc. (NASDAQ:AMZN) triggered a red monthly Trade Triangle indicating a major trend change in this stock. This could be partly due to Amazon's announcement yesterday that it planned on opening 400 brick and mortar bookstores. So after putting almost every bookseller out of business, Amazon is now going into the brick and mortar business. Could that be a big mistake for Amazon?
Technically speaking, Amazon could quite easily fall back to the $441.95 level which represents a 61.8% Fibonacci retracement. That is $100 lower than the current price. Personally, I love Amazon, I shop there all the time, but right now I do not like the stock of Amazon. I think that Amazon is setting up to go lower based on the Trade Triangle technology. If my analysis of Amazon is correct, it does not auger well for the rest of the market or the economy. Continue reading "Major Alert: Amazon (NASDAQ:AMZN) Flashes Its First Major Sell Signal In 16 Months"
Yesterday was a doozy of a day for buyers of Amazon. First the stock rallied and closed out the day at $635.35 for a gain of $52 (8.91%) in regular trading hours. Great day, right?
After the close, Amazon.com, Inc. (NASDAQ:AMZN) released its Q4 earnings which were a big market surprise. In a matter of minutes, Amazon dropped over 13%, closing at $550 in after-hours trading. That is a swing of $85.00 or over 20% in one day!
I outlined on Wednesday that I was neutral on Amazon as the weekly and monthly Trade Triangles were in conflict. When you see a conflict between the weekly and monthly Trade Triangles, it indicates a sidelines position for the stock.
It's the end of the week, end of the month and it's time to talk about the January barometer. Continue reading "Things Got Pretty Ugly For Amazon (NASDAQ:AMZN) Yesterday"
In yesterday's post on Apple, Inc. (NASDAQ:AAPL) I told you exactly what I was going to do based on the earnings pattern I have seen historically for the stock of Apple.
From yesterday's report:
So here's what is needed to make a trade in Apple before today's earnings report is released. The position is taken the day Apple releases its earnings report.
(1) Both the weekly and monthly Trade Triangles are in sync.
(2) Take a position on the close in the direction the Trade Triangles are indicating.
(3) Exit the position the following day on the close.
Based on this strategy, you should have shorted Apple on the close yesterday at $99.99 and you would cover this position on the close today win, lose or draw.
After the close, Apple did announce its earnings which turned out to be disappointing, pushing the stock of Apple down in the aftermarket.
Tomorrow (Thursday), Amazon.com Inc. (NASDAQ:AMZN) reports earnings after the close. I have included a spreadsheet of how Amazon has performed using MarketClub's Trade Triangles in the last 12 quarters. Continue reading "Apple Skids And Amazon Reports Tomorrow, What's Your Strategy?"
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