Wednesday

Amazon Roadmap

1 Comment October 12, 2011 – 2:26 pm |   | Permalink |  Print This Post |

Foreword: Shorting individual stocks is a very dangerous game - DOWNSIDE = infinite

With the warning out of the way, we are going to short 500 Amazon shares $239. Double top at $244 would mean a $2500 loss, which we can take. No stops. We have no doubt the valuation of Amazon is ridiculously overpriced and unjustified. Risks are short squeeze (management owns 20%, institutions own 50%), takeover (not sure who would be that crazy to buy it at PE 104). Having the power to hold out is key.

If and when the Dax hits 6200, we will short the Nasdaq. Technically not much upside to go in US Tech at 2325 (Current price)

Amazon Chart