Amazon: A New High, Not Really

By: Sol Palha | Sat, Oct 24, 2009
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"Reality can destroy the dream; why shouldn't the dream destroy reality?" ~ George Moore 1852-1933, Irish Writer

The so called big news is that Amazon finally rallied to a new all time high. The experts making these claims should be viewed as the blind leading the deaf.

Many would question our audacity to make such a statement and to those who do we have 3 simple words "Pay close attention".

Charts provided courtesy of

Amazon traded to a new high closing high on the 10th of Dec of 1999 (106.68); it put in an intra day high of 113 the day before. The dollar index was trading roughly in the 10 2 ranges at that time. It ended the day on the 23rd October at 75.60; the dollar has shed roughly 29% of its value in that time span. In order to put in a new true new high, it would need to trade to roughly 138 dollars; 29% above its Dec 10th 1998 close. In an article dated Oct, 2006, we stated that the following "Note that in reality the True high did not occur in Jan 2000; the Dow actually went on to put on several new highs one in April 2000 (14167), another in July 2000 (14524) and the all time high actually occurred 15 months later in April of 2001. In April 2001 the Dow traded at 14660 when priced in today's dollars. You ask how is this possible well that's where currencies come into play." Full Article . Welcome to the insidious world of inflation.

"Reality is a prison, where one vegetates and always will. All the rest -- thought, action -- is just a pastime, mental or physical. What counts then, is to come to grips with reality. The rest can go." ~ Cesare Pavese 1908-1950, Italian Poet, Novelist, Translator



Sol Palha

Author: Sol Palha

Sol Palha

Sol Palha is a market analyst and educator who uses Mass Psychology, Technical Analysis and Esoteric Cycles to keep you on the right side of the market. He and his partners are on the web at

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