AMZN Amazon Monthly Chart; Overbot; Negative Divergence; Upper Band Violation; Amazon Prints Multi-Month Top

Amazon is toast on the monthly chart that means long-term; months and potentially a year or three. Willie Nelson says The Party's Over while his boy, Lukas, says the Perennial Bloom is off the rose. It's over for King Bezos's Scamazon. Interestingly, Bezos and his brother plan to fly his tin rocket ship into the stratosphere next month. Amazon is a stock for the record books. Look at that run. It is interesting that she tops-out right when King Bezos wants to 'float to the moon', as Lukas sings. A lot of people like to pretend they are high-born these days.

The top right red lines pattern over the last couple years may look like an ascending triangle, which is bullish, but do not let it fool you. There are only 2 top main touches. It would be a nice rising wedge, which is bearish and fits the narrative of the overall chart, if the highs from 2 and 3 weeks ago would have been a touch higher. Thus, you can make the case that the red lines are simply a sideways channel so you watch for the breakout up or down to see where she wants to go. Sometimes she wants to go to the movies and sometimes to the show.

The negative divergence is striking (the red lines for the chart indicators). Universal neggie d across all indicators and the neggie d is drastic. Look at the histogram; that is a cliff drop as price squeezes out a matching and higher high. That is a beautiful sell signal and price is already off the top over the last couple weeks testing that lower red trend line. Note on the move higher in 2019 into 2020 the indicators were in neggie d sans the histo and MACD line. That tells you the stock will receive a spankdown on the  monthly basis but then come back up for another high since the histo and MACD still have some bull fuel in the tank. And price comes back up to the top 3 weeks ago.

Note the indicators now. Universal neggie d across all indicators including the histo and MACD. Stick a fork in it. It's cooked. And on the long-term monthly basis. This is not a daily chart where the spankdown lasts a few days and recovers, or a weekly chart in neggie d where the spankdown will be a few weeks and then recovery. It is a monthly chart which means AMZN will trend lower for months and potentially a year or few. You are witnessing the  major long-term top in Amazon. Do you feel special? If you are a young person listening to all the jackasses telling you to buy, buy, buy, you better run, run, run, but only after you sell, sell, sell.

The ADX is at 43 remaining in a strong trend for the up move for almost 7 years. This is unprecedented. Remarkable. The strong trend will likely peter out as price drops. Note the ADX up big at the 2018 peak but now price is way higher but the ADX is lower. In other words, as the rally continues and Amazon makes new price highs, the strong trend measured by the ADX peters out. You do not want to own something that is stalling-out like that old Studebaker Mr Hanson stuck Keystone with decades ago. It kept stalling until a new fuel filter did the trick.

Since the upper band is violated, the middle band at 2788, and rising, is on the table and also the lower band at 1639, and rising. Yes, 1600-1800, but that would be a bunch of months down the road. Nothing lasts forever in life. Take your huge profits if long and flip the AMZN position short. Amazon can be shorted from now through the end of the year. There is a multi-month decline ahead for the star performer. Here comes Keystone's henchmen. AMZN is dragged-out of the bar into the alleyway and thrown against the dumpster. Amazon is about to be beaten senseless over the coming months. If you remain long, you will lose money.

If there is positive news out of nowhere, or if perhaps the space launch somehow boosts the stock, price may try to make a new high and touch the upper band again but this outcome is very remote. If it happens, that will be the long-term top. Instead expect AMZN to drop from now through year end.

As AMZN drops, it will drag down RTH, XRT and other retail indexes and stocks as well as the broad stock market. Keystone remains heavily short the stock market mainly with ETF's and other short instruments with the knives out. When it starts there is no mercy. You are going to be slaughtered mercilessly, just to let you know ahead of time, if you are long the market. The Keybot the Quant algorithm remains long; when it flips the end game is at hand and already in motion.

Keystone does not hold an individual position shorting AMZN but would have no problem putting the short trade on through the end of the year. It will be bloody carnage beginning in the stock market any day now. Are you ready? Plan accordingly. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Thursday Evening, 6/10/21, at 5:50 PM EST: AMZN rallies +2.1% to 3350. Amazon bulls proclaim that the upside will continue forever. The SPX gains 20 points today, +0.5%, to 4239.18, a new all-time closing high, and the S&P 500 benchmark index, the US stock market, prints 4249.74, 4250, intraday, the highest number ever in history. Traders and investors are drunk as skunks staggering around buying any stock with a heartbeat. It is going to be great fun ahead.

Note Added Saturday Morning, 6/12/21: AMZN rallies +4.4% this week to 3346. Amazon bulls celebrate King Bezos and expect limitless upside ahead. The SPX prints a new all-time closing high at 4247.44 on Friday, 6/11/21, but the all-time high remains at 4249.74, call it 4250, from Thursday, 6/10/21, the highest number ever in history. King Bezos stands on top of the Blue Origin rocket ship, analogous to Caligula standing on top of the marble pillar, throwing AMZN shares to the greedy people below (Caligula throws coins), watching them lust over money, tearing each other from limb to limb, to own those Amazon shares (coins).