AMZN psar bull signal

Amazon.com (AMZN), the online books-and-whatever seller, is showing a psar bull signal with a price rise so far today that has traversed 4.8% and hit a high of $135.37.

There's no obvious news to account for the move. The new signal comes after a three-day whipsaw.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
AMZN $134.46

The macd move above the zero line and the sto into overbought territory are new with today's price leap.


I'll say up front that AMZN fails to meet my rules for the watchlist. Earnings will be released on April 22, which is far too close to the April options lifespan, and the adx is 26, which is marginally prone to whipsaws.

But rules are made to be broken, and it's fascinating to see such an unexplained move in a widely traded stock that is in the midst of a potentially cut-throat competitive situation with the Apple iPad looming, and whose success or failure will define the world of ebooks and ereaders for a decade to come.

So AMZN gets on the Watchlist. Congratulations, Jeff Bezos.

You are here:

• Reversal
• $145.91, +8.5%
• $142.58, +6%
• Now $134.46
• Reversal
• $134.20, -0.2%
• $127.20, -5.4%
• $115.85, -13.8%
• $113.82, -15.4%

The price will need to close above $134.20 and stay there for me to take this move seriously. I suspect there will be some news in the next few days that will explain it all, and the question then will be whether speculative expectations rose too high.

About the glance:  The colors indicate the state of each signal.

• trend: green for up, red for down, yellow for sideways
• adx: green for above 30-up, red for 20-down, yellow for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.