Amazon Tech Stock PRIMEDAY SALE
Companies / Amazon Apr 07, 2021 - 03:11 PM GMTBy: Nadeem_Walayat
First Amazon stock soared into the stratosphere and now so have Amazon earnings doubling, sales up 44%.Gone is Amazons EC of 148! Gone too is the relatively pricey valuation of 91 of November 2020, and here we now stand barely 3 months on with Amazon priced on par with Google trading on an EC of just 42. What does this mean, it means Amazon is CHEAP! And thus the Buy Percentage is 100%!
Unfortunately this means the odds are stacked against all those looking for lower prices. Of course we can get lucky and the market panics and takes the likes of Amazon with it but in technical and valuation terms seems very unlikely.
(Charts courtesy of stockcharts.com)
Amazon has broken out of it's converging triangle to the downside, which is a bearish signal which implies a down leg to below the 2871. However all things considered I expect this to be a false break lower as the amazon stock price is clearly consolidating ahead of its next big move which given the fundamentals should be upwards! My existing relatively nearby buying level is 2960, which Amazon has come close to achieving though just missing which is a sign of strength. Therefore the new buying level has to be lifted to a level which is actually achievable to $3050, which is where Amazon traded earlier in the week. So as I stated back in November, I still don't see much downside for Amazon especially given the fact that fundamentals have caught up with the earlier stock price surge. So all those waiting and hoping for Amazon to revisit the low 2000's need to delete that expectation from their mind as likely in the not too distant future they will be hoping for Amazon to revisit the low 3000's!
And just as I stated when Amazon was trading below $2000 in 2020, that I would not be surprised if Amazon trades at $3000 before the end of the year, similarly now I would not be surprised if Amazon trades to over $4000 during 2021!
So was I wrong to sell half my Amazon stock holdings in early September 2020? No, because Amazon is still trading well below the price I sold the stock at. And in GBP terms has moved a further 10% in my favour since (fx only matters when buying or selling). Whilst it's overbought state as measured by the MACD no longer exists. And in the meantime Amazon's valuation have moved in the stock prices favour. So I did the right thing at the right time for the right reasons.
This article is an excerpt form latest extensive analysis that concludes in AI Stock buy ratings, levels and valuation analysis for investing in 2021 that has first been made available to Patrons who support my work.
AI Tech Stocks Buying Ratings, Levels and Valuations March 2021
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The crypto mania is continuing to offer a short window of opporunity for likely only a few more months as Bitcoin continues to trade near well above $50,000 which means virtually anyone with a decent GPU in their desktop PC can make easy money crypto mining in the background, and here's how my desktop PC is actually earning a net $6.50 per day crypto mining in the background, which within 3 weeks earned $136 net of UK electricity costs that resolves to $200 per month, more than enough to cover 5 years of Patreon fees at $3 per month ($180)!
Check out my video if you want FREE money, and yes my eyes rolled when I wrote that, sounds too good to be true. Though I do cover the risks in the video such as that the Bitcoin price WILL CRASH, and mining profits are GPU dependant. Nevertheless crypto mining in the background with Nicehash is generating $6.5 profit per day for me, so do look into crypto mining with your desktop PC whilst it lasts (referral link).
Video Contents:
00:20 Mining with NiceHash Intro
01:20 Limit GPU System Power Draw
02:58 3 Weeks Mining Earnings
03:38 Calculating Profitability
07:24 GPU settings for Mining in the background
08:46 Which GPU's are profitable
10:03 How long to crypto mine for
11:04 What to do with your bitcoin earnings
12.30 Spend Your Bitcoin when Price is High
13.30 Bitcoin Price Could CRASH
14:45 Mine whilst profitable to do so
16:33 What to do if Bitcoin Crashes
The bottom line is that the current free easy money crypto mining environment is time limited, how long will it persist for? Whilst I will do an analysis on the future prospects for the Bitcoin price in forthcoming piece. However, I don't see this crypto mania party extending much beyond say 3 or 4 months at best, so don't waste this opportunity as the likes of NiceHash make crypto mining with ones desktop PC a breeze. And if you do mine, don't hold onto your coins!
And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis.
Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.
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