Primed for an Amazon Play

Amazon (AMZN) is raising the price of its Prime service to $99 per year. This isn't completely a surprise. In fact, the market seems to like it. And as much as I don't understand the drive behind the valuation completely, I respect it. Right now, the chart shows the potential of a gap-fill up to $390 and a possible a push to $400. I would look for a close above $383. If that happens, I will be looking for a long-side play, likely via a call spread towards $400. The money is flowing back into the name and momentum is alive again. The stock has broken though almost all recent resistance levels and has broken through all the post-earnings resistance levels, so it's certainly one to watch.

AMZN Source: View Chart » View in New Window »

But all isn't perfect in the markets. The drillers are really struggling. From Diamond Offshore Drilling (DO) and Transocean (RIG) to Rowan Cos. (RDC) and Ensco (ESV), they look like they are breaking down and headed lower. How much lower is the question, but I am looking for at least 5%, possibly as much as 10%, lower in some of these names....110 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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