Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (1654)	2/23/1998 4:27:00 PM
From: Candle stick	Read Replies (1) \| Respond to of 164684

Time to throw in the towel if you are trading purely on the technicals. AMZN had made two reversal tops over the last month, the most significant on Jan. 23. The high that day was 64 1/8 and if you want to go by the book, a close above that price negates the sell signal. Todays close was 64 7/8. Any shorts who were trading off of that signal should now cover. Its a small loss, and best to take it. I maintain 2 separate short positions in AMZN. The short term technical trade I made based on the engulfing top on Jan 23 is cut. The longer term short, based on the "I can't believe AMZN is at this crazy valuation and all the insiders are selling" is still running. My stop loss in that position will be based on subjective observations, and the fact that there is a lot of insider selling going on. I am not likely to cut out unless some major changes occur in the company. Next stop will be a test of the all time high at 66....perhaps AMZN will break it and form another reversal top in the coming days. It is not unusual to see several attempts at a top pattern until a definitive top is found. If that is the case I would expect it to be close to the top of 66, and not much further. If it keeps on going , which I find hard to belive given all the insider selling, we will just have to wait and see.....best of luck to all.......;^)