Sorry!! The article you are trying to read is not available now.
HOT TAGS:  

The Power of the Square of 9

Print comment Post Comments
COOPER'S MARKET INSIGHTS
DailyFeed
We've flagged the 408 time-and-price square-out in Amazon (NASDAQ:AMZN) several times in this space. (See here.) On January 22, Amazon left a little stealth Gilligan sell signal. A Gilligan sell is a gap up to a new 60-day high followed by a close at or near session lows. Yesterday, Amazon exploded from 384 to 406 to test the 408 square-out as players rushed in to buy in front of earnings assuming it was business as usual.

This morning Amazon is trading at 371, meaningfully below its 50 DMA at 390.

From its October 296 low to 408 is 1.5 revs of 360 degrees up in price. 1.5 revs of 360 degrees is 540 degrees, or a true square, a cube. Why? Because a cube has 6 sides of 90 degree angles for a total of 540 degrees. The range from the October 296 low to the 408 high is 112 points. 112 aligns with January 30 on the Square of 9. So, the range also squared out yesterday. Folks, you can't make this stuff up. Is it happenstance that Amazon has been rejected with authority from 408?


Click to enlarge


Click to enlarge

Daily Amazon Chart from October to Present:



The vengeance which with many glamours rallied on Thursday speaks to the unbridled sentiment that it is business as usual. I think this morning's knife down in the futures and Amazon's roundabout will disabuse many players of that notion. Welcome to the jungle.

It's easy to get into a position. It's more difficult to know when to sell. Selling is more of an art. No one wants to get a divorce when things are going swimmingly. The Square of 9 is a tool that does a good job identifying when a stock is vulnerable to a major reversal (up or down). History stands ready to judge those harshly who think trees grow to the sky. The Square of 9 Time-and-Price Calculator is a tool that has helped many great traders and investors.

I have developed a user friendly Square of 9, which comes with a consultation on how to use it. If interested, contact me at cooper@minyanville.com.

POSITION:  No positions in stocks mentioned.
TICKERS:  NASDAQ:AMZN   

TICKERS