11/22 Recap

Another slow session as we go into the Thanksgiving break. Things will be back to normal around here tomorrow.

On a bright note, Amazon closed at 146.71 yesterday, it’s first close in a new range in over 18 months, it last closed up here in April 2022. The most beautiful thing about the breakout yesterday was this below, what was once major resistance at 146.57 now turned into major support and if you look at the 15 minute chart below, you can see that every dip to that level was bought. That’s how markets work, the algos that do the bulk of trading are programmed to trade levels and what was once a level that was sold hard on Amazon is now bought on every dip. It was beautiful to see, and you can show this example to anyone who tells you technical analysis is not real.

Look at this multi year chart, you can see that white line at 146.57 which was the highs last summer. Let’s see where we close tomorrow on the weekly, but yesterday was indeed the first time we’ve done this 18 months on a daily basis, that opens Amazon up to a whole new range above with 170 being the next level to attack. It has been a long road for the 4the largest company in America, but it appears that barring a market meltdown, buyers are willing to finally pay higher prices.

Trends

Intel and Microsoft have dominated the past week. What you will notice here is for the first time in forever Amazon is not among the top weekly trends, but on the monthly you will see it remains the top one, that is because they accumulated all of those calls well before the move we just saw. Intel has been on a tear recently and they just keep buying calls even here, this looks like a great name to sell puts on for the next few months as it continues its drift higher. Disney is another where I thought it would be a tax loss selling victim into year end but do well next year, it seems like they’re starting to circle around it.

1 Week

2 Week

1 Month

Today’s Unusual Options Activity