AMZN, close to 30% in Day? When Down?

riskfreetrading · Oct 24, 2009

Hi,

Did you see amazon bucking the trend today, and making close to 30% return today?

I think it would come back down. Who is long or short and why?

sub0 · Oct 24, 2009

I feel sorry for all the shorts on that one, either yesterday or today. I can just see some people saying, up 10%, has to correct lower. Up 15%, has to correct lower. Up 20%, has to correct lower. lol

riskfreetrading · Oct 24, 2009

Quote from sub0:

I feel sorry for all the shorts on that one, either yesterday or today. I can just see some people saying, up 10%, has to correct lower. Up 15%, has to correct lower. Up 20%, has to correct lower. lol

LOL!

I wanted to short it at 120, but it did not get there.

stock777 · Oct 24, 2009

Bezos The Short Killer

sub0 · Oct 24, 2009

I don't know if window dressing...

(for those that never heard the term)
http://www.investopedia.com/terms/w/windowdressing.asp

...has anything to do with it. Possibly worldwide fund managers scrambling to get in so they can say "hey we own that". I don't know, just makes me feel really uneasy seeing AMZN and MSFT moving the way they are moving.

riskfreetrading · Oct 24, 2009

Quote from sub0:

"hey we own that". ..

Very good point! Also it is all time high, so no losers so far on long side. I still think it will come back down soon.

In the after hours session of yesterday it traded at 107. I am surprised it opened higher.

Petsamo · Oct 24, 2009

I think buyers overbought the stock, I think it will come down some, but I wouldn't short it.

Topper · Oct 24, 2009

I say it has an excellent chance of dropping to 105ish, unless additional over the top market news comes out :eek:

Jesus · Oct 24, 2009

Quote from sub0:

I don't know if window dressing...
...has anything to do with it.

Possibly worldwide fund managers scrambling to get in so they can say "hey we own that".

That is window dressing, just not at the end of the quarter.

alexandercho · Oct 26, 2009

Amazon will fall swiftly a 69.5 P/E ratio is totally over the top. Market conditions are not right for a stock to climb that high. Considering it's only been 2 days for bulls to push that stock up. I bet you it will take 1 day for bears to tear that stock down.
I'd be very cautious even Apple doesn't have that outrageous of an P/E ratio (32.4) and it's the Tech Sector's favorite growth stock.

BE CAUTIOUS

Here's my overall summary Don't BUY