by Anura Guruge
on June 10, 2022
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I can’t really gloat (let alone take much credit) since this was SO, SO ELEMENTARY.
IF CPI ran hot, even slightly, the market was going to go down. That is obvious. Inflation is still running high. You can see it all around us. So, I had a fairly good hunch that CPI will come in slightly higher than estimates. It did. The market tanked. QED.
It is good that AMZN has gone down, this much, since Monday’s split. The newbies to AMZN that piled in after the split have to learn their lessons. AMZN stock is volatile & it does not defy gravity.
I suspect that quite a few got caught in a margin squeeze. They borrowed against margin to buy AMZN and with stocks going down they are being asked to repay some of the margin they borrowed. So, they have to sell stock, in a hurry, including their new purchased AMZN shares to raise the cash. That sends AMZN prices even lower.
I will now NOT be surprised if we see AMZN trading BELOW $100 in the next month. SMILE. [Don’t worry about me. Thanks. I am OK. I am an options trader. SMILE.]