Take a note of this strange pattern in AMZN
. There is a sharp selloff from a high that you can connect with a straight line over the past 6 months. Almost as if a seller is using new highs to liquidate a big position. I've never drawn a trendline
like this before, but the pattern jumps out at me especially today because AMZN
has such poor relative strength
to the market. It would be nice to graph a stock to highlight the days when it is outperforming and underperforming by coloring the bars different. You can see what has happened after each one of these episodes, so perhaps that is the trade that is setting up here. You decide. Risk is back to today's high.