During its bull phase, AMZN moved from $64.79 at the February 2009 close to $109.26 at the June close, a gain of 68.6% total. The annualized gain was 51.5%.
AMZN's slide is a countermove within a larger upgtrend that began in August 2006. The most recent leg up began in November 2008 at an open of $56.35.
AMZN's peak was $151.09 last April.
With a stock with such a pronounced upward bias, I would expect its bearish sojourns to be on the short side. And so it has proven to be. The last bear phase lasted six months.
Monthly chart analysis is for very long term traders: People who are restricted from active trading or who simply have better things to do in their lives, like watch Germany's awesome performance for Argentina this morning in the World Cup quarterfinals.
My rules are simple:
- Buy when a stock close above the 12-month simple moving average
- Sell when it closes below the sma12.
- Make the trade as soon as it is apparent where the close will be (i.e., don't necessarily wait until the absolute end).
- Pick stocks that have large monthly swings (either directionally or as legs within a sideways trend)
- Dividends are a big plus
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we remerge from the wreckage.
Disclaimer
Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
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