After an uptrend, I always look for a continuation pattern, especially when I believe we're in a major secular bull market advance. Well, look no further than Amazon.com (AMZN), which doubled in price from its March low to its early-July high. Since that stunning advance, AMZN had consolidated in a very bullish ascending triangle pattern... until today:
The measurement, which is represented by the distance between the top of the triangle (equal highs at 3250) and the depth of the initial low (2900), is roughly 350 points. If we add that measurement to the 3250 breakout, we get an initial target of 3600. While I believe AMZN reaches that level with ease, the short-term could be a bit dicey given that options expire on Friday. If AMZN fails to hold its recent breakout and falls back to its rising 20-day EMA, that would be a very solid entry point.
AMZN is part of our Strong AD Portfolio at EarningsBeats.com, which we initiated on May 19th of this year. This portfolio is currently higher by 20.63% these past 3 months, nearly 5 percentage points higher than the S&P 500's 15.97% return over the same period. Our flagship Model Portfolio is +36.10% since May 19th and has crushed the S&P 500 since its inception on November 19th, 2018. In just the past 21 months, the Model Portfolio has gained 128.56%, more than 100 percentage points higher than the S&P 500's advance of 25.98% over the same time frame.
Wednesday is Draft Day, where we "draft" our 10 equal-weighted stocks to hold in each of our 4 portfolios for the next 90 days. If you'd like to be part of this event, scheduled for 5:30pm ET, and check out our selections, you simply need to be at least a trial member of EarningsBeats.com. Currently, we have a no-cost 30-day trial. CLICK HERE for more information about the event and to join! I hope to see you there!
Happy trading!
Tom Bowley, Chief Market Strategist
EarningsBeats.com
