How to Play Amazon (Video)

By EconMatters


Investors and Traders should remember there is a huge difference between a great product or company and a stock. I think oftentimes investors get these two ideas confused in properly evaluating the value of a company`s stock price.

Just remember everything has a price, and at some point valuation concerns come into play regardless of how great a company outperforms in their business segment. And remember all momentum stocks eventually crash and burn if we look back through the history of the stock market.

Pay attention to the key technical levels to the downside as they will become important in the future, trust me on this one. Momentum works both directions, and after a run that Amazon has gone on since the financial crisis, it is going to get real nasty for any bag holders in this stock on the way down.

 

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