Hello there....it has been a while since I posted anything on this site. I took some time off from trading as my wife and I prepared to get married.
Anyway. I have been paying attention to Amazon and I was wondering if anyone else is currently watching the downward move develop on the W, D, and 233 charts. I virtually bought 2 300 Sept 13 (whoops, meant to buy Oct 13) PUT options at the close on Friday. I know that the seasonal trend for Amazon on RTT is up but all of my charts are saying that it is set up for a downside move and of course with all of the news coming out (ie economic reports, sales tax on internet companies, disappointing earnings, overheated market?, and the possible fed tapering next week)...I cant help but trade the evidence.
Now the W chart closed this week with a shooting star (currently without confirmation), and bearish divergence on the indcators, tells me that a trend change could be at hand. The D chart has broken its upward trendline and formed a doji on the UBB on 9/10. With all of my indicators turning over to go down here and on the 233 I found it a great place to enter a PUT play.
Now I know that this is currently against the market and I am very cautious as to how far this downside could go but it appears that AMZN wont run into any real resistance until about the 291 mark.
Any thoughts on this trade would be greatly appreciated as I am still working on all of my bigchart trades.
Thanks again.