Amazon.com (AMZN), which posted its quarterly earnings on Friday, disappointed many investors with slipping margins. The market reacted quite dramatically with shares of Amazon skidding downhill for a loss of 9.5%.
MarketClub members did not have to sit through this downturn as we exited Amazon on January 21st - some five days before the report. How did we know the report was going to bad? The truth is we didn't know, but our "Trade Triangle" technology recognized that something was amiss and alerted members who follow Amazon to exit pronto.
As the graph will show, we have had two trades since September 1st of last year and in both of these trades we were successful, giving us gains of $36.85 a share.
Our long-term indicator continues to be positive on Amazon, but for now intermediate-term traders should be on the sidelines counting their money and waiting for a better opportunity to re-enter this stock.
Another worrying concern is what Bank of America/Merrill Lynch said today, "Owning the stock here requires trust and patience. We have seen Amazon go through investment cycles before and believe investment in growth is the right long-term strategy for the Internet."
Not exactly a ringing endorsement in my opinion.
Well, forget trust and patience. We prefer to trust our "Trade Triangle" technology as it has consistently proven to be successful. Our "Trade Triangles" produced just 2 trades in Amazon since 9/1/10. Producing a very respectable 47% return in just five months.
If you're not already a MarketClub member, you should seriously look into our "Trade Triangle" technology. It will help get you into the markets at the right time and out before everything starts to slide.
You can learn more about MarketClub by clicking here, or you can sign up for a 30 day risk free trial right here.
All the best,
Adam Hewison
Co-founder of MarketClub