…or will it prove to be a fake like the August gap? AMZN gapped up even higher than it just did back in August, but went down about 7% below where they were before August earnings (15% down from the August gap up).
Looking at what happened in extended hours this time, I’m not so sure about what to expect. Just like with NVDA’s last earnings, AMZN gapped up strong as soon as earnings were released yesterday, but then profit takers swarmed in and sold AMZN for about an hour and a half all the way down to negative on relatively high volume. Then around 5:35pm, buyers emerged and traded it up in about an hour back to around the top of the spike where it’s been trading since then on lower volume. The big question in my mind is what is going to happen this morning when volume returns.
It will be interesting to watch…
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Swing Traders don’t watch but excute per the rules. AMZN just spiked up and over the 20 ema heading north for the next possible 12 days on average. If there is a SELL signal, sell and move on until he next buy signal. Since January, up over 75%.
Silent charts speak volumes of werds.
Quill - A poor church mouse scratching for a living as a Swing Trader.
Note the Selling on 9/15/23 and a buy signal 10/27/23.
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Thanks, Quill, for the interesting notes.
Me, I’m a lot more simple. I feel like AMZN gapped up into a messy range where the current price doesn’t tell me much. If this up move is going to be regarded as the start of an uptrend, then it needs to get up to a higher high in a time frame that is much longer than a few days. Yes, it could eventually surpass the required 135, or even better 145 (just 4% or 12% from here). But it could also fall to a new low 9% down from here. Currently it’s just in a messy middle area in my mind. From right here. I am not willing to bet on either direction, but maybe I could bet on both at the same time with a strangle.
I feel like once it settles down (tomorrow) it will likely just follow the market (SPY or QQQ) like it normally does. Currently SPY and QQQ are both weaker than AMZN, but that is expected.
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re: QQQ
re: SPY
QQQ / PSQ are from my Tetter Totter sand box.
So far this year, 6 for 6 successful trades batting at 1000 percent with ZERO losses.
Today we had a buy signal.
The Tetter Totters are recession proof. HODlering does not werk.
SPY / SPDN are from my Tetter Totter sand box. IMPOSSIBLE to lose any money other than a minor headfake or two per the simple two (2) rules.
SPDN 9 for 9 with Zero losses,
See ya around the campus.
Well, Quill, I really hope you had a hard stop. SPY went red right after you posted and kept going down until later in the afternoon when it turned up slightly, but still very negative for the day. It’s like I always say. Nothing works 100%. If I ever found something that did work 100% then I would keep it a secret and become a billionaire.
dereksas,
We swing traders call it a basic Headfake that comes with the territory. However, sold at a minor loss and continued with the inverse.
Investing is a Business and must be treated as such.
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I don’t know. I wouldn’t call it a “headfake.” I would call it a simple continuation of a steady 10-day downtrend. Don’t get me wrong, I am often looking for reversals upward after going down. I just didn’t see it on that day.
But I am happy that you only had a minor loss. Limiting losses is the secret to it all. More important than any technical analysis skills.
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