Mission Accomplished?

There are some names that should be owned, and not traded. AAPL and MSFT come to mind, and the chart below of AMZN can be included in the conversation. This chart was from 6 weeks ago, and to be fair I wrote something just a few days ago how the chart was showing sign of exhaustion with some bearish candlesticks. It is a good example of paying attention exclusively to PRICE action, where as candles are important to detect reversals, they are more so at bottoms as the markets have a long term bullish bias. Amazon is now higher an incredible 15 of the last 16 weeks, and to show just how strong the momentum has been it has lost ground on consecutive weeks just ONCE in the last 7 months. The stock is the largest component by far in the XLY, although many consider this name a technology stock. It is also the third largest holding in the SPY, and as money flows into these popular ETFs it boosts the share price in a significant manner. Thursday to end the week, it reversed less than 2% away from the very round 3000 figure, the measured move off a recent bull flag breakout. Do not be the least bit surprised if it takes out the number in spectacular fashion.

This article requires a Chartsmarter membership. Please click here to join.