Markets went into wait mode for the fed upcoming decision whole day except Nasdaq which went into green decisively until closing 15 minutes......
Nasdaq as usual showed the most strength.......
Market internals were decidedly negative in NYSE & Nasdaq......
AMZN was the subject of negative article from Motley Fools who called it the "scariest stock"...this kind of negative take will only accelerate the turnaround as shorts love to "jump on a short opportunity in a hurry"
If AMZN finds its footing near 50 DMA which is $88.10...where it is holding "firm in AH"...
Once AMZN moves UP above 50dma expect a "huge short covering rally"
www.stockconsultant.com is rating AMZN @ 90 out of 100 for a positive trade for tommorrow...their immediate target is $97.24......
Shaeffer's Research is also positive on AMZN and they are seeing MF article as an opportunity to get a major short squeeze going.... as AMZN moves UP after finding support....
The above two organization are purely technical oriented......
My take is AMZN will find support around 50dma and move UP sharply after testing the support.......
My portfolio is the same as AM which is :
AMZN,AAPL,MR,RVBD,VMW,RIMM......
Today my portfolio was down only slightly above half % exactly .6%....thanks to my strategic sale of SINA in pre-market & booking decent profit.......
I cannot overemphasize the need to stay diversified in strong stocks.....& taking profit very quickly......dreamers get killed more often than they care to remember......
I am expecting tech big guns to continue their march UP after the fed policy statement.....
Bargain stocks and laggards will remain so.......more so now because speculators are getting worried about the market strength...so they will sell the dogs now...to meet margin calls or to stay out of the market......after losing a good portion of their equity.....
AH SIRF is flying on good ER.....
AH DRYS dry ship is more dry now down $20....
AH WYNN is getting killed on so so ER down $14 and LVS down $10 in sympathy....
Most investors/traders have not realized that October was a pretty good month..where Nasdaq went into highest close since heyday of 2000.....so much for Oct phobia......
Just before 1 pm and till 3 pm markets will show their magic of UP 100 and then down 100 every 10 minutes...means "nothing for thursday tape".....treat this as "great entertainment as staged every fed decision day"
Good luck for yo yo fed day......
BLOG does not give buy or sell.
Saleem
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