The Simplest Trade For Holiday Season Profits
Hey Gang,
Since the election, my S.A.M. AI Scanner has been lighting up with opportunities.
And this week, I’m keeping it simple with a trade everyone knows – Amazon (AMZN)
I know it sounds odd that I would trade such a high profile stock.
But once I give you a sense of what I see in the market, you’ll understand why this stock is perfect for this environment.
Closing Out the Year
Markets now have a bit more certainty with the election and latest interest rate announcement behind us.
As I suspected, a lot of premium came out of the options market as the VIX crashed from +23 to less than 15.
While it’s still high, the VIX is back in a normal range.
Essentially, traders and investors aren’t buying as much protection as they were just a week or two ago.
And I don’t blame them.
Markets tend to run pretty hard after elections right up into the new year as earnings announcements die down and people go on vacation.
However, we’ve gotten to a spot where I would expect consolidation.
The ES futures hit $6,000, SPY touched $600, and the S&P 500 reached $6,000 – all for the first time. These big, round numbers tend to act like magnets, keeping price action nearby.
The daily chart of the S&P 500 appears to be topping out at that price, possibly making a rounded top (or at least the beginnings of a consolidation).
I could easily see the market pulling back from here to work off some of the recent momentum. But, markets have a history of bull runs.
To give you some perspective, here are the daily charts of the S&P 500 from the last two election cycles.
Interestingly, the market wasn’t making new highs as quickly as we have this time around. But in both cases, the S&P 500 pushed higher not only into the end of the year but into the start of the next.
And that’s why Amazon is a no-brainer for this market.
Keeping it Simple With Amazon
As the broader markets grind higher, Amazon isn’t just coming along for the ride – it’s leading the charge.
Keep in mind, we’re also about to enter the Christmas shopping season, where Black Friday and consumer spending benefits the online retailer.
Now, I know markets have jumped very quickly. That’s why I look for stocks with relative strength that consolidate near their highs.
I want to look at Amazon’s 130-minute chart to illustrate my point.
We’ve entered a period of consolidation near the all-time highs. However, the TPS setup hasn’t quite formed yet.
So far, we have only two of the three components: a noticeable up TREND and a consolidation PATTERN.
We have yet to see dots at the bottom turn red, indicating a SQUEEZE where the Bollinger Bands move inside the Keltner Channel.
But so long as Amazon doesn’t crash out and just keeps holding near these all-time highs, there’s a good chance we’ll get a TPS setup before long.
Plus, we know short sellers will put their stops right at all-time highs. So, breaking above that will force them to cover their positions, creating a squeeze.
And here’s what makes Amazon such a perfect trade right now…
While most traders focus on complex setups, Amazon gives us a straightforward opportunity with multiple catalysts:
- Post-election momentum
- Holiday shopping season
- Technical consolidation near highs
- Potential short squeeze brewing
But timing is everything.
Getting the entry wrong on a high-priced stock like Amazon can be costly. That’s where having a proven system makes all the difference.
Ready to Trade Amazon Like a Pro?
Trading mega-cap stocks requires more than just watching price action – it demands precision timing and expert position sizing.
That’s exactly why I created Profit Surge Trader.
In next Monday’s LIVE session at noon EST, I’ll share:
- My complete Amazon trading gameplan
- How to size positions in high-priced stocks
- The exact levels my S.A.M AI Scanner is tracking
- Why consolidation near highs often leads to explosive moves
- Real-time alerts when key technical levels are hit
What sets these sessions apart? It’s the combination of institutional-grade analysis and street-smart trading experience.
While other traders chase headlines and hope for the best, we’re executing precise entries with clear profit targets.
The Amazon setup is just one example of how we combine technical analysis with market catalysts to find high-probability trades.
Ready to elevate your trading with professional guidance?
Click here to secure your spot for Monday's Profit Surge Trader LIVE session.
Let’s catch the next big move together.
— Nate Bear