Amazon Harmonic - Daily & Hourly Bearish Bat
There isn't much more to say other than that if the 0.886 retracement holds on both the hourly and daily timeframes into Tuesday's morning session, this Bearish Bat harmonic could end up confirming an enormous reversal that has been nearly a year in the making.
I remember reading that some dude had a 2M put position going into Amazon's 2020 Q2 earnings report... despite the fact that this was the first blow-out earnings beat (10 times street expectations top and bottom!) the put position wouldn't have bankrupted him in a day. I know this because I speculated with reasonable calls into that ER, thought I had won the lottery, only to watch this thing selloff like hotcakes on the open.
Point is that Amazon runs like hell both randomly and seldomly. Thus, the odds of it making all-time highs is actually much slimmer than one would believe - especially if they were to also look at the volatility that is implied by last week's options. Sometimes black-box financial engineering methods employed by machines lack the human intuition to know when a financial asset is ready to turn. The implied volatility assumed into Amazon's near-term contracrs is one such example that can be exploited for an easy volatility flip on the first break of harmonic support.
That, or you could try for the almighty dime-bagger that this harmonic structure implies in the mid-term, the likes of which would produce some of the most expensive same-week options that have ever been printed.
-AmazonianSwine
AMZN
ARKK
AAPL
CURRENCYCOM:US100
IXIC
NDX
SPX
CURRENCYCOM:US500
I remember reading that some dude had a 2M put position going into Amazon's 2020 Q2 earnings report... despite the fact that this was the first blow-out earnings beat (10 times street expectations top and bottom!) the put position wouldn't have bankrupted him in a day. I know this because I speculated with reasonable calls into that ER, thought I had won the lottery, only to watch this thing selloff like hotcakes on the open.
Point is that Amazon runs like hell both randomly and seldomly. Thus, the odds of it making all-time highs is actually much slimmer than one would believe - especially if they were to also look at the volatility that is implied by last week's options. Sometimes black-box financial engineering methods employed by machines lack the human intuition to know when a financial asset is ready to turn. The implied volatility assumed into Amazon's near-term contracrs is one such example that can be exploited for an easy volatility flip on the first break of harmonic support.
That, or you could try for the almighty dime-bagger that this harmonic structure implies in the mid-term, the likes of which would produce some of the most expensive same-week options that have ever been printed.
-AmazonianSwine
AMZNARKKAAPLCURRENCYCOM:US100
IXICNDXSPXCURRENCYCOM:US500
Trade active
Once the meme bulls realize the seriousness of todays selloff and RUT finally falls thru, then we can see the above scenario start to really play out.Would be fantastic to not have to roll over tomorrow's expiration.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.