Yesterday, I saw this:
One of the great Slip 'n Slides of human existence.
This is an emotionally charged cover on a major tabloid. Big letters with the words Conquer and PRIME. Huge smile from Dr Evil. It's all there. We're only missing a .wav file of his proprietary laugh.
It reminds me of another cover back in 2013 - a cover from Time on Carl Icahn as "Master of the Universe."
No smile from Carl, though. He masked NYC dour arrogance instead.
I wrote about it when I saw it here and here. Go take a look.
And the long term result?
IEP was in a parabolic blowoff pattern when the cover appeared. It was closing on a 150% gain from its $40-$50 dollar two year (Mar 2010-Dec 2012) base.
And now establishmentarian Bezos graces the Pillars of Pride:
The chart is different. No blowoff.
The trend is up on the recent, low volume all-time new high breakout. Earnings come due July 28 aftermarket - about a week away.
Tactically, I'd scale back my position risk anyway ahead of the binary earnings event. With the cover, I'd probably take a little more off the top.
A blowoff move catalyst for AMZN - like IEP - may be this report. A big gap higher on positive earnings I'd use as as a "gift" sell signal.
Here is a trend following supportive sell tactic.
Use a close below the 7 day exponential average to sell. Check the stock price through the last half hour for a break confirmation to sell same day. Or let price close below the 7 day ea and sell on the next day's open.
If the stock suffers a large gap down, the cover likely coincided with an abreactive top. Thus, my suggestion of reducing position size a bit more than usual ahead of the release.
I'll update next week.