We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of Amazon.com Inc. (AMZN).
I hope you are having a GREAT week !!!
This week AMZN looks like a great chart to take a look at.
From time to time we here at INO.com come across someone in the industry that grabs our attention. Recently we saw a post from Guy Cohen about a trade and how he had called the breakout for sometime in advance. How he caught the breakout was intriguing and we asked him to share a bit about the trade with traders blog readers.
Guy Cohen is a bestselling author of several trading books, and the creator of the OVI Index, Private Traders Club, and Flag-Trader. His clients include NYSE Euronext, The International Securities Exchange (ISE) and FT Prentice Hall.
Guy is also holding a special webinar for Traders Blog readers tomorrow Thursday 9/22, for more information click here.
Amazon shares fall 9.5% and the company's founder reduces his holdings.
Amazon.com (AMZN), which posted its quarterly earnings on Friday, disappointed many investors with slipping margins. The market reacted quite dramatically with shares of Amazon skidding downhill for a loss of 9.5%.
MarketClub members did not have to sit through this downturn as we exited Amazon on January 21st - some five days before the report. How did we know the report was going to bad? The truth is we didn't know, but our "Trade Triangle" technology recognized that something was amiss and alerted members who follow Amazon to exit pronto.
As the graph will show, we have had two trades since September 1st of last year and in both of these trades we were successful, giving us gains of $36.85 a share.
Our long-term indicator continues to be positive on Amazon, but for now intermediate-term traders should be on the sidelines counting their money and waiting for a better opportunity to re-enter this stock.
Another worrying concern is what Bank of America/Merrill Lynch said today, "Owning the stock here requires trust and patience. We have seen Amazon go through investment cycles before and believe investment in growth is the right long-term strategy for the Internet."
Not exactly a ringing endorsement in my opinion.
Well, forget trust and patience. We prefer to trust our "Trade Triangle" technology as it has consistently proven to be successful. Our "Trade Triangles" produced just 2 trades in Amazon since 9/1/10. Producing a very respectable 47% return in just five months.
If you're not already a MarketClub member, you should seriously look into our "Trade Triangle" technology. It will help get you into the markets at the right time and out before everything starts to slide.