Loading ...Rick’s Pick for Monday—[klik to enlarge chart]
$AMZN – Amazon (Last:987.41)
Updated Sunday, August 6 at 6:30 p.m. EDT
The 975.80 correction target shown is clear and compelling — sufficiently so that we should continue to use it as a minimum downside target for the correction from July 27’s record-high print at 1083.31. Plan on bottom-fishing the target if and when AMZN falls to 976.50 or lower. You can use weekly call options at the 1000 strike with at least 10 days left on them. Alternatively, a pop exceeding 1006.40 by mid-week would not negate the target, but it would put the short-term bearish case on ice for the short term. I will continue to monitor this stock closely, because if we get it right, we will get the stock market right as well. In that regard, a bullish reversal in AMZN this week could be expected to add nitro fuel to the Dow Industrials’ already impressive rally.