Weekly Raid #74 - AMZN Earnings Blowout
Happy Friday Traders!
We made it, another week in the books. I hope it was green for you like it was for us here at The Weekly Raid.
If it was, don’t forget to pay yourself, if it wasn’t take a look back and see what when wrong.
News of the day
PCE and Personal income are both out this morning. Really these report two sides of the same coin. It’s a look at how good the consumer is doing in comparison to months past. If PCE is up, we will hopefully see Personal income rise as well and personal spending stay the same or grow slower. If PCE and Spending are up more than income it’s often a bad sign for the consumer.
Amazon crushed earnings last night with a staggering 400% jump in net income from a year ago.
A lot of this was driven by its AWS platform with them securing several new high-profile contracts and the fact that Prime continues to increase to help ease it as a loss leader.
I think we could be watching AMZN start to challenge AAPL for the top spot on the market. AAPL has had a serious issue with innovation since Jobs died, and even the diehard iPhone fans I know are no longer as infatuated with it. They aren’t upgrading anywhere near as quickly.
I think it’s going to come down to cash burn rates. If Amazon can build up a stockpile of cash similar to that of AAPL, I think we see it become the defacto market leader.
I won’t be able to trade today due to some personal items. If I was though, here is what I would be watching today.
AMZN is obviously on the list, with killer earnings I would watch for momentum to shift and retest the 50-day up around the 130 mark. That also happens to coincide with another current LVN.
The only other ticker I would watch today is SPY. We are bounced off of a lower channel bound as well as a Long-term POC. Everything seems to be gapping up this morning and I would watch for this to shift momentum in the short term.
As always trade well and Good Luck
As always this is all for educational purposes only. You are solely responsible for your trades as I am for mine. Nothing in here should be construed as financial advice, but only educational content about the markets and my particular trading style.