Here’s your trade on Amazon (AMZN). (July 03, 2018)


Just a quick look at Amazon ( NASDAQ: AMZN ) here. Here’s the thing: I view this stock as presenting a real opportunity sometime soon. I had been hoping it was this morning but that turned out not to be so. The thing is, the stock is coiling into kind of a volatility squeeze. These Bollinger Bands are pretty tight, about 5 percent, I like that. They have gotten tighter in the past, about 3 percent and when they have the move has ultimately been to the upside.

Now, we have got Amazon Prime Day coming up on July 16th, I think it is. It is going to be like 36 hours long. That includes foods at Whole Foods and things like this. This has been a pretty strong catalyst for the stock, a pretty big catalyst.

I am suggesting that you watch the stock; wait for a better entry. If you look at these red bars here, red, green, red, green, red, green, red. What’s next? Thursday, probably green. There is not a lot of distribution on this stock but it is obvious from the way it gapped up this morning and then kind of traded down for the rest of the day, the stock is still kind of under a little bit of distribution so I think you can be patient here.

If the stock gets back to 16.50 and it could, it could very easily, it was there just last week; if it gets back to 16.50 I think that is when you try to “load the boat”. That is really when you start moving on this stock. So don’t take this off your radar screen, I want you to keep on it. It is not a good opportunity right now. I think that you will get an opportunity sometime in the next few days to get a better entry on this; a lower stock price which would give you a lower strike price on your call options and that is really where you would want to trade it.

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