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Jim Bear
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I am a private day trader, swing trader.
  • Is Amazon Stock Being Manipulated On Earnings Days? 2 comments
    Oct 28, 2012 12:46 PM | about stocks: AMZN

    While I realize that SA is oriented to fundamental analysis there are times when it may pay to look at technical charts.

    Amazon (NASDAQ:AMZN) released earnings Thursday after market close. In after hours trading the stock dropped as low as $204. On Friday it opened at $228.60 got as low as $226.69 in the first hour of trading and then climbed to close at $238.34. All with terrible fundamentals and poor forward guidance from the earnings call.

    Look at the following chart for the last three earnings calls, all with poor fundamental results. This is a stockcharts.com chart with the bars sized based on volume traded on each day. You will note massive volume and strong up moves on each of the last three earnings days.

    stockcharts.com/h-sc/ui

    Another chart looks at trading over the past two days. Buyers were so eager to get into this stock that almost all transactions on Friday (the day after a $0.60 loss per share when consensus was a $0.08 loss) were at the ask.

    http://scharts.co/SJI8UV

    As mentioned, I am short AMZN, so I do have a view point. My last short was CMG, which didn't turn out too bad.

    Disclosure: I am short AMZN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Stocks: AMZN
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  • Jim Bear
    , contributor
    Comments (52) | Send Message
     
    Author’s reply » Some additional points to mention though they are apparent if you look at the charts::
    In a flat market Friday (DJ up 0.03%, S&P down 0.07$) AMZN was up 6.9% from Thursday close.
    Also, volume of AMZN shares up almost 400% on Friday.
    28 Oct 2012, 12:53 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    It's very sketchy... Similar to NFLX in early 2011, I'll be doubling my short exposure on Monday.

     

    My take on the market move is that a lot of the big players increased their stakes on Friday, while some of the retail/boutique shops sold off.

     

    I think AMZN will turn down once enough big names talk out-- Cramer talking down AMZN vs AAPL should help start the momentum.
    28 Oct 2012, 06:51 PM Reply Like
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