Our Stock of the Week is Amazon (AMZN). Amazon is one of the Fab Seven names that have been leading the market all year. Like the other names, it doesn’t have a cheap valuation with a trailing PE of 76 and estimated EPS growth of 42% next year, but it is cheaper than the mighty Apple (AAPL).
What we like here is the technical setup. It had a cup-with-handle pattern that has moved into a trading range of just under $150. There is support around $143, which would be the logical stop point.
The main issue here is market conditions. There will be some pressure to hold up the Magnificent Seven names until the end of the year as they are the leading stocks in the market, and money managers will want to show the gains, and they won’t want to sell and trigger big capital gains.
If there is continued interest in these big-cap names, then Amazon has the best technical setup and should see chasing if it can move through the $140 area with some velocity.
As always, we will not chase the stock on Monday morning but will be looking to trade it aggressively as it develops and market conditions shift.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in AMZN. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
