Tuesday, October 1, 2019

#Amazon Review $AMZN

Amazon Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Amazon's trend, revealed by trends of price, leverage, and time, are defined and discussed in the The Matrix for subscribers.

Subscriber Comments:

ALIGNMENT (Price & Volume)

Amazon's composite trend is Down, Down, Consolidation. This trend, a consolidation combination very close to triple downside alignment, is a dangerous setup for the bulls. Close doesn't mean downside alignment will materialize, but all traders should be watching as Amazon is important leadership stock. We're told never bet against the US consumer and the indirectly infers never betting against Amazon, the category killer in retail. Rules are great until the invisible hand renders them useless. Disciplined traders listen only to the message of the market.

ENERGY (Diffusion Index)

Energy cannot be tracked for individual US stocks.

Participation (ProIndex)

While the ProIndex uptrend confirmed the rallies from 2016 to 2018, it generated a series of lower highs after 2016. This defines decreasing (and increasing) professional (and public) participation. In other words, the massive bearish divergence implies that the strong hands are selling, while the weak are buying. This is a dangerous setup longer-term. If the sh*t hits the fan in 2020, you can't say the invisible hand didn't warn us.

Amazon's ProIndex

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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.