Amazon.com, Inc. (NASDAQ:AMZN) is holding minor gains today even with the market deep in the red. The stock traded as high as $181.84, +4.64 early in the day after reports came out that online sales look to be very strong this holiday season. While this helped the stock up early, it has given back all but a Dollar of the gains. The markets are under huge pressure as Europe continues to fall apart. It is all but certain now that Ireland was just the tip of the iceberg. Spain, Portugal, Belgium, Italy and others are likely next and will require bailouts down the line.
AMZN continues to show some signs of life but recent gains in the stock put the upside at minimal levels. Just months ago, AMZN was trading near $100.00. Nearly an 80% gain later, it looks to be over done with more risk that it falls, rather than goes higher. Should it be shorted? Be careful with the Federal Reserve doing their best to prop up the markets but possibly in the next week, AMZN looks to be a good pull back play.
Gareth Soloway
Chief Market Strategist
