- Amazon has gapped higher to kick off the trading session on Monday as the United States and China look like they are going to at least attempt to get some type of trade deal going.
- This, of course, directly influences what happens with Amazon, as Amazon's business is basically bringing Chinese-manufactured goods into the United States.
- We are struggling a little bit just below the $230 level, an area that was a swing high, but really, we are just a whisper away from making a higher high, changing the trend.
It's also worth noting that we had bounced nicely from the 200-day EMA about five sessions ago. And at this juncture, I think you've got a situation where eventually we go looking to the $240 level. I've got no interest in shorting this market, and I think if it does pull back, that ends up being a nice buying opportunity.
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That being said, there is one thing to pay attention to, and that would be your earnings call on Thursday. That obviously could be influential, but if the US and China come to an agreement and the Federal Reserve cuts rates, that may make the earnings report no matter as much as it normally would. Either way, this is a bullish market. I think it remains that way. I have no interest in shorting at least until we get below the $210 level, something that we are going to have to see a lot of negativity in order to break down below there.
If the market were to break to the upside, the $240 level is a bit of a barrier. And if we can break above there, then I think we really can take off. We've got a lot of work to do before we get there, but that's what people will be looking for in the future. I think every time we pull back; there will be value hunters willing to get involved and put more money into Amazon.
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