Hi IKE....
i always enjoy your thoughts on "everything"<g>...making that trek in the maountains, hiking and refreshing oneself must be marvelous, and invigorating, both for life, limb, and the mind...it sounds spiritual..
anyway, here;s an article from Tom Dorsey...re: AMZM and the nets in general...smart man...calm, understands the markets, and emotions...supply & demand...simple...but effective...
pullbacks in stock, sectors, and indexs are normal in the scheme of things, without hollaring CRASH!!!!! what crash??? when??? how???, i think in because of the fear factor, we will continue much higher on this constant wall of worry, the bears and shorts keep yakking about, day in and day out!!!
once in awhile i read a thread and can't believe the rethoric, the on going banter, the ooohs and ahhhhs, and wows, and it's over, yadda yadda yadda...Reminds me of a couple chickens cackleing all the time...
my regards to you and the family...
Go to....------------Sym Look UpBP LinksWEBsIndicesCommods------------CanadaItalyGermanySpainSwitzerlandU.K.------------Help Me!
From the Analyst 04/28/99
Choose an Archived Report
Amazon Announces Earnings
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On Wednesday after the close Amazon (AMZN) announced earnings. For guidance with the internet stocks we turn to our chart patterns. Contrary to popular belief, not every internet stock has rallied and moved to new highs. For instance, On Sale (ONSL) has more than been cut in half without the benefit of split in about four months. That is why it is important to examine the supply and demand relationship in any stock.
Because of the volatility in many of the internet stocks we increase the box size to effectively "slow the chart down." This gives the chart a more orderly pattern and something that is usable. For most of the internet stocks trading above 100 we use a 5 point per box chart. The standard size is 2 points per box. For those internet stocks which are trading below 100 and still have erratic chart patterns, we may increase the box size to 2 points per box while the traditional chart is 1 point per box.
Below we have shown two charts, AMZN and AOL. As you can see both of these stocks are trading above the bullish support line so the main trend is positive. After pulling back to support, both had a very nice run up to resistance or exceeded resistance. Now we have started to see both of these names pullback on their charts. These pullbacks will provide an opportunity to enter new positions as better prices and better risk-reward ratios. In fact, let's do a vertical count on AMZN to get an idea of where this stock may go. The first thing we must do is count the number of X's in the column where AMZN goes from a sell signal to a buy signal. This column, denoted with an asterisk below, has 13 X's in it. We then multiply 13 by 3 because we are using a 3 box reversal method and get 39. From there, we multiply 39 by the box size which is 5 points per box and get 195. We add 195 to the bottom X of 160 and we get 355 for a long term price objective. Buying AMZN in the 185 area with a stop at 130, the violation of the bullish support line, gives us a great risk-reward ratio. How long will it take for AMZN to reach that price objective? We don't know the answer to that question. But what we do know is that as long as the main trend for this stock is up, we will stay with it. For more information on the price objective, be sure to check out the P&F University.
Take a minute and scan through the stocks in the internet sector and you will see that following the chart patterns and waiting for pullbacks can aid you significantly in playing this group. Below we have outlined the steps for accessing the stock charts of those in the internet group (or any group for that matter).
Accessing Charts Within a Particular Sector:
* Click Bullish Percents Charts (in the lower left corner)
* Go Down to Internet and click on the blue letters "Chart"
* At the top of the chart it says "Link to Bullish Percent for Internet Component Tickers" and click there.
* Click on the symbol of the first stock
* Use the right and left arrow keys on the left hand side of the chart to scroll through the members of the internet sector.
Amazon.com (AMZN) 5 Point Per Box Chart
*
230 Top
225 ---------------------------------------------------------------------------
220 X
215 | X O
210 | X O
205 | X O
200 ------------------+-------------------------------------------X O ---------
195 X X X O
190 X O X O X X X O
185 X O X O X O X O X O
180 X O 4 O X O X O X
175 ------------------X O ----------------------------X O X O X O X -----------
170 X O X O O X O X
165 X O X O X O X
160 X O X O X O X
155 X O X X O O
150 ------------------X O X O ------------------------X ------------------- Med
145 X O X O X
140 X O X O X X
135 X O X O X 3 X O X *
130 X O X O X O X O X O X *
125 ------------------X O --O X --X O X ------X O X O X --------* -------------
120 X 1 O X O X O X O X O O X *
115 X O X O X O X O X O X O *
110 X O X O X O 2 O X X *
105 X O | O X O X O X *
100 --------------X --+-----O X --------O X O X ------* -----------------------
95 X | O O O X *
90 X | O X *
85 X | O *
80 C | *
75 --------------X --+---------------------* ---------------------------------
70 X | * Bot
65 X | *
60 X | *
55 X | *
50 --------------X --+-----------* -------------------------------------------
America On-Line (AOL) 5 Point Per Box Chart
190 | |
185 | |
180 | |
175 --------+-----+-----X -------------------
170 | | X O Top
165 | | X O X X
160 | | 4 O X O X O
155 | | X O X O X O
150 --------+-----+-----X O --O X O ---------
145 | | X O X O
140 | | X O X
135 | | X O X
130 | | X X O X
125 --------+-----+-X O X ----O X -----------
120 | | X O X O X Med
115 | | X O O
110 | | X
105 | | X
100 --------+-----+-X -----------------------
95 | | 3
90 | | 2
85 | | X
80 | X | X
75 --------+---X O X -----------------------
70 | X O X
65 | X 1 Bot
60 | X |
55 | X |
50 --------+---C +---------------* ---------
45 | X | *
40 | X | *
35 X B | *
30 7 O X | *
25 --------6 O X +-----* -------------------
20 4 8 | *
15 2 | *
10 9 | 9 9 * 9
5 7 9 8 * | 9
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While we make every effort to be free of errors in the data on our site,
it is derived from data from other sources. We believe these sources to
be reliable but we cannot guarantee their accuracy.
Copyright © 1995-1999 Dorsey, Wright & Associates, Inc.
Disclaimer.
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