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

To: IceShark who wrote (11578)	7/23/1998 5:21:00 PM
From: Floyd D. Schneider	Read Replies (1) \| Respond to of 164684

Amazon.fool Delivers. you will lose all your money longs Subject: AMZN Date: Thu, Jul 23, 1998 16:16 EDT From: Rev Shark Message-id: <1998072320161800.QAA24819@ladder01.news.aol.com> <<Amazon.Com Inc (AMZN) Retail - Misc / Diversified : 0 new highs in group of 87 Last Time Change %Change High Low Volume ---- ---- ------ ------- ---- --- ------ 130 1/2 1:04PM -3 1/2 -2.61% 138 1/2 129 3,039,400 Recommendation ........................ Short Made at ............................... 131 1/8 Made on ............................... Jul 23 1998 How it's panning out .................. 0.48 Potential double-top. Stochastic is coming out of overbought. It looks like Amazon's retest of the recent high of 140 is not going to penetrate. Amazon went straight to 140 from 40 like it was a one-off on a checklist. Selling brought it back to 100. Buying brought it back above 140, but Amazon was only in record high territory for a couple of hours before it backed off. MACD Histogram reflects this. There is a massive hump above the center line, formed during the 40-140 one-off run-up. The fade in prices in early July to 100 brought that hump back below the centerline. The recent run-up back to test the old high resulted in a very small hump over the centerline. This defines a bearish MACD Histogram divergence. Prices are higher but the hump underneath prices is smaller. This phenomenon is described by Elder in "Trading For A Living" as "the strongest signal in technical analysis." Elder then goes on to say: "When prices rally to a new high, but MACD-Histogram traces a lower top, it creates a bearish divergence. A lower top in MACD-Histogram shows that bulls are internally weak even though prices are higher. Bearish divergences between MACD-Histogram and prices identify weakness at market tops." As such, I see prices resting here for a while. After all is done and said, and all the earnings are out and digested, is it correction time for the Internet group? In the least, it would appear to be an appropriate juncture for a bit of a pause here. There are still some corks popping. ZAP is popping, CNWK is somewhat popping, and PSIX is definitively popping. But I also hear some gears grinding. It's like hitting the gas and the brake pedals at the same time. Internet stocks do not conform very well to hard and fast rules. Nonetheless, purchasing shares at this time carries risk. The stock is technically weak. >