Amazon's Apple-Like Movements
It seems as if Amazon (AMZN) could announce it had stolen the Lindbergh baby, and analysts would still step up and defend the company -- perhaps arguing that the publicity would drive more traffic to the site, thus leading to better growth in the future. The company's stock should be in jail today, but it has bounced well off the lows last night. The move has resembled Apple (AAPL) a bit -- so, if this same pattern continues, holding an Amazon long position into Friday will make me a bit nervous. There is no doubt this is a great company. But, in this market, there is no way I want to chase the valuation Amazon holds, especially after this past report.
The bump this morning gave me a chance to jump in and adjust my put combination trade in Amazon, as well as to cover all my short calls. I've taken what little value was left in the long calls and moved them down to $210-$215 call spreads, but the proceeds only managed to give me a half dozen of these spreads. This one could come back down to test the 200-day moving average around $197.62, which also ties in very closely with support around $199. The challenge for momentum names continues....203 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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