Wasn’t expecting to short Amazon today (AMZN) but the beautiful bearish harami pattern that has formed over the last two days using candlesticks made it irresistible (the candle pattern resembles a pregnant lady). I got in at the close at 122.04, with a stop-loss just above the highs reached yesterday. This stock is extremely overbought, and leaves traders with a huge gap to fill post-earnings. if this market is indeed rolling over like I believe it to be, then there is no way Amazon doesn’t take a beating in the process.
My other position occurred earlier this morning by going long GLL at 11.85 which is the ultra-short of gold. This is another chart in which I am playing the pullback of a commodity gone wild – not to mention their obnoxious infomercials seen everywhere. Continued strength in the dollar should help this position out quite a bit.