Here is your Bonus Idea with links to the full Top Ten:
Amazon (NASDAQ:AMZN) has been jealous. It is conquering the world in every way every day, and yet Apple (NASDAQ:AAPL) sells some new iPhones and has a market cap 80% higher. What is a Bezo’s to do? Just keep plugging away. To me it seems he is about to start getting his rewards. After the stock trading sideways in a range, except for a week in July, it broke to the upside after reporting earnings 2 weeks ago. It consolidated for a week and now looks primed for the next move higher. The chart below shows that long consolidation and lift off of the 50 day SMA. A Measured Move higher gives a target to 1240 should it break above resistance at 1115.
Momentum is in the overbought range but has softened and is now reversing higher looking at the RSI. The MACD continues to move up. And the Bollinger Bands are opening to the upside. All positive. There is no resistance over 1115 and support lower is found at 1090 and 1055 followed by 1020. Short interest is low at 1.4% and the company does not report earnings again until the end of January.
The weekly options chain shows high open interest at the 1110 call compared to all other strikes. November monthly options show biggest open interest at 1100 on the call side. December is similar with big open interest at 1100. And January shows up the same at 1100 the biggest but some big size at 1150 as well. Some stagnation predicted here.
Amazon, Ticker: $AMZN
Trade Idea 1: Buy the stock in a move over 1115 with a stop at 1085.
Trade Idea 2: Buy the stock on a move over 1115 and add a December 1110/1050 Put Spread ($20) and sell a January 1190 Call (19.50) to pay for it.
Trade Idea 3: Buy a November/January 1150 Call Calendar ($27) and sell the December 1050 Puts ($11).
Trade Idea 4: Buy the January 1120/1200 Call Spread ($26) and sell the January 100 Put ($11).
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the next week sees Equity markets are strong but mixed with the IWM lagging the SPY and that trailing a red hot QQQ.
Elsewhere look for Gold to continue its short term downtrend while Crude Oil races higher. The US Dollar Index looks to continue its move up while US Treasuries join it in their short term trend higher. The Shanghai Composite and Emerging Markets look to consolidate their gains at multi-year highs.
Volatility looks to remain non-existent keeping the wind at the backs of the equity index ETF’s SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). The QQQ looks to continue higher leading the charge with the SPY moving up at a slower pace and the IWM sitting on the curb, watching as it consolidates. Use this information as you prepare for the coming week and trad’em well.
DISCLAIMER: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.