Moral of Story-- AMZN is up 5th Day, $22 straight up, S&P straight up 5 days---Getting killed every day
Market was roaring today though AMZN gained during last 30 mins. It has broken previous 26th Oct high of 238.34, which is Ugly. While it seems to me that AMZN might touch 247 next week and S&P 1433 if the market continues to roar. However usually market takes a break for 1 or and so might AMZN which may touch 235-236. Next week is very crucial as if market trade sideways as well as AMZN trade sideways, from first week of Dec things might again take a hit and S&P may touch in 1365-1380 range by mid dec.Market rallied 66 points in 5 trading days which is almost 5 % (from 1343-1409)
Long or Shorts i would like to listen view point , i am stuck in my short position, but i am not bullish at all now at this stage, though i beleive the correction may not be big. I am looking at 230 where my loss would be 10-15% it if toches by mid dec.
Because monday greece might get next tranche of money. But global markets have rallied very strong this week and it needs breather, but during this period market.
I really hope that we get 3-4% correction on 10% gain of AMZN in 5 days. I am convinced that 232 will be printed by 3rd week of Dec but this roaring market today has made me think little cautious. Why was market so strong??
One good thing is there was low volume.
I am sure AMZN will 100% see below 200 next year, but since i have put options which expires in Jan, i am much concerned.
Sales Tax will be a big dampener and other factor is that all Retailers have good Online prence and every retalier has started free shippping or pick up at store.
Capital Gain tax will be increased , ther is no option
Instead of bashing either shorts and longs share your thoughts.
I know for AMZN fundamentals doesn't matte much, but it will matter eventually . Remember this stock has gone from $37 in 2008 to $264 in 2012, every year new highs. i think this 4 year cycle will end next year with no new highs and AMZN between $150-$200 next year most of the time.
Kindle has a Very Very good competitor Google Nexus, all my friends have gone for Google Nexus in 7 inch category. Tablet market is super crowded. Apple fans will always buy iPad. Value buyers are prefering Google Nexus and Samsung Galaxy Tab.