AMZN Update: Big drop incomingIn all the different tech stocks I have been looking at, most of them appear due for a steep correction. This coincides with my thesis for the various US indices too. Looking at this chart Amazon looks like it needs OMH into the 1.618 @ $158.94 to complete wave ((B)) but that is not required. If you are long this thing you are taking huge undue risks for breadcrumbs IMHO. I personally haven't been trading AMZN, but if I was, I would remain flat until we get that next high (if it comes) and be ready to buy puts/short the stock.
The next drop forecasting should take us sub $80 at the least. After that, price should soar to all time new highs, but we are a long way off from that. As you see, I have an ALT count on the chart (turquoise label) per the usual. This count suggests wave IV is already over and we're headed to all time new high in this current move higher. With the state of the economy, the limited benefit AMZN offers (convenience only), and the structure thus far carved out, I think this is not very likely. If you know me though, you know I try to track at least two different counts. Amazon is HIGHLY dependent on the supply chain as they are essentially just a middleman. This makes them especially vulnerable to outside factors that are out of their control. The global unrest/geopolitical environment is not good for Amazon and make it a very risky long-term investment if you ask me. Just my two cents as everyone's responsible for their own decisions. Good luck whatever you decide to do with this information.
