The “Squeeze” Is On:

Rarely is there any discussion of the discretionary group without mentioning Amazon. If makes up nearly one quarter of the XLY, and obviously will have a dramatic impact with its PRICE movement in the fund. There are a few technical factors to like with the name, first as can be seen below, as the Bollinger Bands are beginning to “squeeze”, meaning they are contracting as the narrowest range in the last 6 months (they were very compressed in late May as well). This forecasts a very powerful impending move, although the direction is ambiguous. Most likely the next leg will be higher as it trades sideways following a big advance of 105.7% between late March and mid July. The stock has CLOSED the last 3 weeks very taut, all within just .6% of each other. Breaks above that kind of consolidation are often very powerful, especially near all time highs. As Glen Frey used to sign in the “Heat Is On”, and he could have been talking to the shorts “the heat is on, on the street (Wall) Inside your head, on every beat “tick”). The shorts must be getting very anxious here.

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