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I just want to do a quick video on Amazon ( NASDAQ:AMZN ). These little blue hash marks here is where the stock is trading after hours, because they announced earnings that nobody really liked except the short sellers, so the stock is down at this support level. There’s going to be a boatload of selling right at the open, because that’s what happens when the stock trades down after hours in response to earnings. There are going to be a lot of market-sell-on-open orders where as soon as the market opens up this stock is going to absolutely get crushed.
Remember this, the company has been loosing money pretty much since the day that it was founded, I think the Amazon River is move profitable than Amazon ( NASDAQ:AMZN ) here, and that’s filled with crocodiles or alligators or something. The point is, it’s almost like the numbers don’t matter, at some point they will, and maybe this will be that magical moment in time when suddenly investors are going to go, “You know what, these guys need to start generating some earnings by not trying to take over the world and do these stupid drones.” Anyway, at some point investors are going to start caring
What you need to be doing tomorrow is watch and see how the stock trades, let’s say at 320.00. It has gapped down to support; it’s gapped down to this trading range, to the bottom of it. So ask yourself, “If the stock gaps down this low, what are the chances that all of these sellers that are selling are actually going to be met by buyers who are saying, ‘Cool I’ll go ahead and take this stock at a discount?” And also met by buyers who are going to say, “Oh my gosh! Happily I’m short the stock, I’m going to go ahead and cover on this pullback.”
So my bet is you’re going to get some buying that comes in here. You could have a gap and then it just continues to run, we’ve seen other stocks that do that, but I think the real odds are that the stock’s going to bounce, at least a little bit. So if you happen to be long don’t sell first thing in the morning, give yourself leeway for like 320.00. If the stock starts falling below that then that’s known as a bad thing and you can start lightening up. I wouldn’t just rush in and buy it either, there are tactics to trading this type of thing, what I call the “59-Minute Trader” tactics, but generally speaking you’re going to want to look at this and see about maybe buying it on a dip for a trade, just for a trade; I hope that works for you.