April 26, 2018 | Attitude, Not Earnings, Are Driving the Madness in AMZN

Several days ago, I wrote here that AMZN’s reaction to earnings released after Thursday’s close would determine whether the bull market, now in its 111th month, would live or die. The key test was whether the stock could get past two important peaks on the daily chart. It did so with ease when the news came out, exceeding not only those peaks, the higher of which lay at 1576, but the old record high at 1617. My latest analysis says that AMZN, which has traded as high as 1641 this afternoon, could go on to hit 1699.04 (or alternatively 1704.49). If so, we should be prepared for the possibility that this will be a bull trap, the deceptive last gasp of a bull market that long ago exceeded the bounds of economic reality.  The market in any event is incapable of keeping up with a stock driven by madness. Moreover, AMZN itself has been trading at around 250 times earnings — a tad rich for DaBoyz to be fattening it up even more with manic short-squeeze rallies like today’s.

Rick Ackerman April 26th, 2018

Posted In: Rick's Picks

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