Amazon (AMZN): Ripe for a pull-back???


The stock market had another very nice rally today, but we just want to point out that Amazon (AMZN) actually finished the day in negative territory. In fact, all five of the big cap names that have accounted for large part of the rally off the March lows (MSFT, AMZN, AAPL, GOOGL and NFLX) all finished in negative territory today.

Given that these names have all out-performed by such a large amount over the past month or so, today’s action in not a concern yet. We’re going to have to see these names act poorly for more than just one day before we tell investors they should start taking some profits in these names. However, the action in AMZN today DID raise our concerns more than the others.

AMZN experienced an “outside-down day” today. If you’ll remember, that’s when a stock trades higher than its highs from the previous trading day…AND lower than it’s lows from the previous day….AND closes below its previous day’s low. This takes place a lot less often than you might think, so it’s something that always catches our eyes when it happens.

It’s a sign of exhaustion…especially when a stock has seen a significant rally over the near-term…and it tends to be followed by more downside movement in a stock (or an index for that matter). HOWEVER. this is not something that necessarily means that a major top has been put-in for AMZN. It merely means that investors should be careful about chasing it up at these levels. If it sees any more downside follow-through, that would signal that a full blown correction in the stock is highly likely (even if its long-term trend remains in tact).

As we alluded to above, one day does not make a trend, so we don’t want to send ...

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THE WEEKLY TOP 10


THE WEEKLY TOP 10


Table of Contents:

1) By far the most best item on the bullish side of the ledger? “Don’t fight the Fed.”

1a) If things turn down again, don’t blame the Fed.

2) So far, the stock ...

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Morning Comment: Suddenly Range-Bound


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After retracing 50% of its decline, the ...

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The S&P 500 has fallen almost 5% over the past two days and the DJIA has lost over 1,200 points, but after a 28% rally in less than a month, these are not the kind of numbers that will scare ...

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Morning Comment: So Many Holes in the Dike


We all know that the big story in the market place yesterday was the crash in WTI crude oil for May delivery. There is no question that there were some key technical issues that were involved, but the move into ...

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Morning Comment: Narrow Rallies Rarely Last Very Long.


Some very negative news on the economic front got most of the blame for yesterday’s 2% decline in the stock market yesterday, but given that the market had rallied 27% over just three weeks, it was getting ripe for a ...

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Morning Comment: Don't Chase the Rally at These Levels.


The stock market was able to regain about 2/3 of its early morning losses by the close yesterday…as the technology sector was able to rebound nicely during the day (after it declined in the morning on several ratings downgrades on ...

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Morning Comment: The Retailers & Housing Stocks Should Be The Important Indicators


After a very disappointing day on Tuesday (when the market dropped over 3% from its intraday highs), the stock market bounced-back quite nicely yesterday. The S&P 500 rallied 3.4% and finished on its highs of the day for the second ...

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Morning Comment: The morphing of the coronavirus.


By the time we reached midday yesterday…and the stock market was up 10% from last Friday’s close…it seemed like the bullish talk within the market place had begun to grow. In other words, the number of people who (like us) ...

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THE WEEKLY TOP 10


THE WEEKLY TOP 10


Table of Contents:

1) We expect a much more gradual rebound after this recession than the consensus believes.

2) That said, the initial bounce in stocks will be strong…even if it becomes more gradual later.

3) ...

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Morning Comment: The Battle Lines Are Well Defined For The Chip Stocks


  • Nice rally yesterday…on good volume…but mediocre breadth.
  • Can the rally in crude oil help (and offset the employment data) again?
  • In the future, 2021 earnings expectations will need to be compared to 2019, not 2020.
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Morning Comment: Liquidation Phases Sometimes Come in Waves


The news that ABT could be coming up with a coronavirus test that gets results in 5 minutes and that JNJ announced a lead vaccine candidate over-shadowed the rising numbers of Covid 19 cases and deaths from over the weekend…to ...

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