AMZN Out, GOOGL In

Two ‘internet stocks’ used to play the DJINET/stock market bounce scenario

As noted the other day, I did what I thought was the right thing and de-risked the ‘bounce’ scenario by taking some profits.  Included in that was a sale of the over valued but awesome Amazon (AMZN). Today I replaced it with less over valued and maybe even more awesome Alphabet (GOOGL).  Each of these are just plays on NFTRH’s view of support for the DJINET at 280 as noted a week ago.

So the market bounce labors on and though yesterday got a little hairy, the potential is still for SPX to probe up near 2000 (I still hold SPY, my largest current position). As for GOOGL, it has a habit of filling gaps and I am speculating that is all it is doing today with its downside. The lower panel is GOOGL vs. AMZN, which interestingly has been in an uptrend through the worst of the market’s problems. It did the same thing in August. Profit booked in AMZN, I’ll try GOOGL instead so long as the ‘bounce’ scenario remains in play.