Monday, May 21, 2007
Amazon breaks out of tight 3 weeks formation
Amazon broke out today on heavy volume. I am adding to my positions here. I am playing the July $65 strike calls. I anticipate that this will be a strong move. Market is doing very well at the moment and the liquidity in this market is tremendous! Where it stops? Nobody knows but there is a lot of skepticism in this market still. They say, "this market cannot go on, it is completely irrational, it just can't be doing this!". I agree, but the difference for me is that I don't argue with the tape. This market action is some of the strongest that I have seen and I have been trading since 1995. What does all of this mean? I don't care. We will know the exact stimulus for the market action later in the history books. I choose to focus on what really matters as a trader, profits and protection of capital.
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