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July 27, 2017 | Has AMZN’s Dramatic Reversal Called The Top?

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

AMZN hit a bull market target Thursday that had been 17 months in coming and then plunged $82, suggesting it may have made an important top.  The high occurred to-the-exact-penny at a 1083.31 Hidden Pivot resistance that I began drum-rolling in early June when the stock was trading for less than $1000. I put a great deal of emphasis on this forecast because if AMZN was headed toward an important top, so was the stock market. We shall see. But the top was corroborated by another that I had projected in DIA, an equity-based vehicle designed to track the Dow Industrials. It topped Thursday at 217.75. Although that’s a new all-time high, it is not sufficiently above the 217.45 target I’d projected to consider the target decisively breached.  How will Thursday’s dramatic divergence between the Dow and the Nasdaq/SPY be resolved? My gut feeling is that bulls will win this one. Even so, I’ll be watching AMZN in particular very closely, since the broad averages are not going to get very far without the stock’s powerful leadership. On the other hand, the Dow has suspiciously failed to confirm Nasdaq’s weakness. This divergence, much as it pains me to acknowledge it, looks bullish to me.

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July 27th, 2017

Posted In: Rick's Picks

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