Bought small number of 305 July 20th Puts Friday at the close. If I have to I will take a loss on Monday and wait for a better entry point.
My Opinions: AMZN is a great company with a stock price that is way ahead of it's future earnings / cash flow prospects. Look what recently happened to AAPL. There is no arguing that the longs have been in control however stocks like AAPL had a lot more going for them before it took big hits.
The desparation of shorts continues to rise and so does the overconfidence of longs. Who will win in the short-term is anyone's guess. Technically, AMZN is still incredibly strong however with an RSI at nosebleed levels and up ten days in row it triggered my purchase of Puts .
+1, it's all about timing. You'll have to let the bulls have their runs especially is only being held up by momentum and fantasies. It can go to whatever, I don't care. All I know is I will be there in the end to ride it down. There will be obvious signs when the time comes. Low % short and high daily short volume means bears are trying to time this and so far the vast majority have been sheared. Don't fight the FED. Let the FED destroy itself, either soon or down the road. They are loosing control with the interest rates as the rest has figured out that there's no way that the government can pay down these debts without killing the economy and standard of living. This is the worst of both world, more worthless balance sheet stuffing while the debt payment balloon bigger. Very soon the FED balance sheet will take a big haircut if they're keep continuing with reckless abandoning. They should have stopped several years ago and let the market readjust but no. The rest of the world will not just stand by and let their dollars be destroyed because, it's their money too. They will force the FED to stop or slow down with the interest rates rise. It will be a slow death for the FED when their balance sheet is full of worthless treasury and toxic loans. Yes, they can buy unlimited amount of paper but who's going to bail the FED when these paper blow up??? How about converting bad paper to toilet paper? Everybody can use it after a good dump I suppose.
so when is the market gonna swing the other way? No signs of it with Bernanke's easy money backing, even with interest rates backing up now, which used to be a headwind for high beta, and oil over $106, which should in reality ,not be great for AMZN profit momemtum to come back to the flatline. So even in the weeks where you got both rate and oil headwinds against what should not be good for AMZN, it goes up parabolically.. Bernanke's liquidity feed to Wallstreet is the game in town drowning out the realities.