- Amazon stock surges 17% as earnings beat expectations.
- US new home sales at seven-month low; manufacturing stabilizes.
- AT&T gets FCC approval, immediately completes $49-billion takeover of DirecTV.
There will most probably be another retest of the bottom of the range. This time it might not be so friendly. The previous bounce was a hard fought bounce. Would not be surprised if we actually broke below this range this time.
For the bulls any trade at the bottom of the range with a tight stop is good risk to reward. Any break below the trading range then I suggest you go short.
The stocks in the Nasdaq include but are not limited to Google, Facebook, eBay, Dish Network, Costco, Amazon, and Apple. So you can see why the Nasdaq is still above water. The past few weeks, Amazon and Google have performed relatively better than its peers.
The second opportunity was a the close of the high and low bar of the previous day. The stop would've been right where the blue line is. If I held the position today, I would put my stop at the 20 DMA. Though it is likely that it will break through that as indicators show it is overbought.