Written by Rick Ackerman, Rick’s Picks
We’ve been using the 875.20 rally target for Amazon (NASDAQ:AMZN) shown (see later, below) for quite some time, and it has served us well, keeping us on the right side of the stock even when its canny handlers were shaking it down brutally.
Their shenanigans should have fooled no one, since AMZN is one of a handful of stocks that every portfolio manager absolutely must own. Notice that even when they were creating air pockets in order to steal shares from frightened pensioners and widows, the lows of the respective swoons to the red and pink lines were not sufficient to fill a ‘mechanical’ bid.
The stock has always been a buy on weakness, and by now we should have come to understand that such opportunities will be fleeting.
That said, AMZN appears unlikely to rise much farther without a substantial correction. Moreover, the next one, presumably from 875.20, could prove to be the dip that fools everyone. If so, it will hold enormous consequences for the U.S. stock market. Is the fat lady warming up her pipes? We may know within the month.
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