Just an FYI for those in the AMZN short trade: The stock is scheduled to report earnings after the close tonight so make sure that your position size is commensurate with your risk tolerance and trading style. Many traders will close positions before a scheduled earnings report as stocks will often experience large gaps in either direction following their earnings release. Although at times I will close a position before earnings (typically if I have already have significant embedded gains and/or the stock is near one of my final profit targets, such as the recent NFLX long for example), as a general rule I hold my swing trade positions through earnings as it has been my experience that more often than not, the future earnings and outlook for the company are already priced into the charts.
Sometimes this strategy will put you on the wrong side of a gap and occasionally by a level that exceeds your predetermined stop by a wide margin. Therefore, always trade and adjust your position sizes according to your own personal risk tolerance and trading or investing style. Here are the updated daily & weekly charts for AMZN and as this stock is prone to sizable gaps following it’s earnings reports, these charts will most likely have changed considerably tomorrow. If the stock is indicated to gap above the previous suggested stop criteria of 290.50 tomorrow morning, I will try to post an update on my exit strategy before the bell tomorrow.
