Tuesday, 10 May 2016

1pm update - who wants to chase AMZN at $700 ?

Whilst US equity indexes are holding borderline significant gains of almost 1%, one of the remaining intact momo stocks - Amazon (AMZN), breaks a new historic high of $701.42. Not surprisingly, one of the infamous cheerleaders on clown finance TV felt compelled to chase it.

AMZN, monthly (linear scale)

Ms' link is a buyer


So.. Ms. S' Link on CNBC.. whom has always riled me up with her eyes straight to camera 'buy buy buy'.. is now chasing AMZN from the $700s.. with sp'2070/80s, and VIX 13s.

Go check a few of the basic stats for AMZN @ Yahoo! finance

How does a PE in the 70s sound?

There is no dividend of course.. and the net profit margin is under 1%.

Almost any of the Dow components would be infinately better..  but no....  she went for AMZN.

As for the main market...


Clearly.. there is a great deal of resistance around current levels. Considering current price action, it'd seem the bull maniacs will hold the rising trend (>2070) into the close.