It's a Prime Day to Be alive
and be in retail stocks
Today is the start of Prime Day for Amazon
This often leads to a buying opportunity for the stock itself. In the past, the stock has fallen on Prime Day(s) and then proceeded to raise in the following Days/Months. The Average increase in the month following the end of Prime Day is 4.4% per Dow Jones Market Data.
We are currently sitting at $127/share as I write this. This would push it up over $130/share over the coming month
Now the only Caveat I would say to this historical data is that we have been in a screaming tech Bull market since the “Recovery” in 2012. When this does eventually stop, I don’t know. But I don’t really care, you trade what you see not what you think.
On that note, a solid potential trade on this information would be to wait for the drop that usually occurs on the days of and sell some monthly credit spreads. That would keep your risk tight and generate some cash flow. Cash Secured puts would also work, but those are a bit riskier in my opinion.
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Vix is still hovering around its close last week, but I would hardly call it elevated at 15. That is another trade I am watching for, I think some long-dated VIX calls in the 20’s will pay off as a solid hedge against someone in one of the various world governments dropping the ball. Just like in college, it always pays to have protection, so may as well buy it when it’s cheap.
Finally is the sector rotation from yesterday. I am working on some custom rotation calculators and diagrams, so hopefully, those are done soon.
Looked kind of flat across the board. With earnings starting at the end of the week, I would not be surprised if we start just rotation until companies start reporting.