Stock Talk Saturday – Amazon bought Whole Foods: Bullish or Bearish?

Stock Trade Setups

Stock Talk Saturday is back with a great stock. Amazon has been a beast all year. It has come form $35 in 2008 to over $1,000 just a few days ago. Of course, Amazon stock has sold off a bit since then. The main question is what is it likely to do now. I am glad you asked, because right now it has a good 30 point shot lower in the cards. These cards can change, but what is really the most interesting is what it does after the drop.

You see, a stock falls much faster than rises. It is for this fact that real money is made in declining markets. Up-trending markets provide steady profits. Amazon is poised to give steady profits soon, but we have very tight risk of which to jump on board. If the stock does breakdown we get to jump on the short train, and make some real profits. Usually short-sellers and trend-traders are in two groups, but the real group are the ones who trade a down or an up market.

Any form of trading can produce money, but my style of trading can be summed up with a nursery rhyme.

Are you into options trading?

Our Stock Talk videos try to highlight the big movers that we can take chunks out of in our options trading group. There is no reason to set through large declines in an option, but options are great to take advantage of larger moves with. The concept of One Stock One Trade formed out of me looking for one stock where I could play the options over multiple months. Playing an option once is good, but being able to jump in and out of the same stock multiple times makes trading easier and more profitable. FCX looks poised to make a run very soon, which could bode well for holders of it. Our philosophy is less is more, so holding the option at opportune times is the way we are going to play this one. If you like this video please like, comment, and share.

We do trades like to this on all timeframes in the options trading group.

Entreprenuer, Trader and Philanthropist

Matt Dye, Founder of ABusinessWithTrading, is a professional trader who specializes in trading price action. His mission is to empower traders through education, and every month attracts readers across 50+ countries. To discover more about Matt’s Price Action Strategies, visit his Trading Courses page.