September 19, 2018
The Most Important Stock In the World Just Broke Its Trendline
The single most important stock in the world is Amazon (AMZN)
AMZN has become a proxy for the entire stock market. If you overlay AMZN’s chart with the S&P 500 (below) AMZN has lead the S&P 500 beautifully during this latest bull run.
Indeed, AMZN’s chart is effectively the same move as the broader market, with less volatility (not surprising given how intense buying has been of this one stock).
With that in mind, what happens to AMZN provides a glimpse into what will happen to the rest of the market. Which is why the failed breakout to the upside in August was a big warning to investors that the market was losing steam.
But what’s REALLY important is the recent breakdown. As you can see in the below chart, AMZN has broken its bull market trendline. It’s now bouncing to “kiss” former support. And if it cannot reclaim that line, the market is in SERIOUS trouble.
Something like this.
And the Best Part is That 99% of Investors Won't See This Coming!
I keep warning and warning… but no one is listening.
The market meltdown that started in Emerging Markets earlier this year WILL spread to the US.
Don’t believe me?
The FANG stocks, which lead the rally throughout 2008 (indeed by some measures these five stocks have accounted for over 50% of ALL market gains) have peaked. Heck, they didn’t just peak, they’re down 15% since their recent peak. We’re talking close to bear market territory.
On top of this, the S&P 500 FAILED to launch a breakout of its rising wedge formation. A failed breakout is one of the most dangerous chart developments because it often results in a VIOLENT reversal.
We're talking about a move like this:
best part... 99% of investors won't see this coming.And smart investors who put capital to work here stand to make LITERAL
Chief Market Strategist DHF.
George Town. Cayman Islands.