Saturday, February 1, 2014

Trade 1484, 1485 short AMZN and WFC

AMZN earnings miss is a big one.  Whilst they've had a series of misses in the past, usually forward guidance is fairly positive, this time both fell below expectations.  318m earnings/ 26bn revenues, (239m/25.6bn est).Amazon delivers disappointment to Street
The guidance of 18-19.9bn is lower than the 19.7bn estimates.Amazon Profit Trails Estimates as Holiday Delivery Costs Rise - Businessweek

The after hours trading is indicated a price of about 365 initially and I sold on a rally to 387.  AMZN has a history of missing earnings estimates and guidance and still having good price recovery within 3 trading sessions but that risk is offset by the current weak market sentiment.

I also shorted WFC, might make a post on the weakness in financials in another post.

These two positions are my first shorts since Aug 2013, so I've been fairly patient on trying to play some weakness in the market.  I was fairly happy after closing my AAPL, MERU, TGA and EBIX, WNC longs early in January this year, as the market seems to be in corrective mode for sure now.