Note: Short This Absurd Spike In AMZN

The Company burned through over $4 billion in cash in Q1.  This is because it has to sell its products and services for less than it costs to put them up for sale and deliver them.  I have documented this in fine detail in my report.   AMZN issued $6 billion in debt at the end of 2014.  2/3’s of that have already been spent.   It is using accounting gimmicks to present an operating income number that is not real.  This is an epic opportunity to short this stock for a short term gain.

This stock reminds me of Commerce One (CMRC).  Anyone remember that one in 1999-2000?  It ran from $10 to $600.  It was out of business about two years later but it plunged when the NASDAQ plunged in the spring of 2000.   This entire stock market is set up to plunge.  GOOG is up today on big misses across the board.  AMZN will drop like 100 lb weight disc dropped off the Empire State Building.

18 thoughts on “Note: Short This Absurd Spike In AMZN

  1. The absurd spike in Amzn is not as absurd as the monkey hammer of gold.
    The individuals who are running this kabuki theatre must be craping
    in their pants. With paper currency being demonized by the big banks
    and precious metals dollar price being destroyed, you know something
    bad is coming our way.

  2. Dave,

    Your analysis is spot on.
    However, playing in a rigged casino is a fool’s game. (would you enter and play in a casino if you knew they used marked cards ?)
    For the scumbags over at the “Fed” to be micro managing every single market speaks volumes of how bad things must be behind the scenes.
    That said, I believe that they can keep this charade propped up for a lot longer than anyone thinks.
    When the “Fed” is determined to show the world “proof” that QE has worked, via a pumped up stock market, there is no way they are going to allow anyone to make any meaningful currency on the short side, unless they want the market to go down.
    As good as an analyst as you are and as many connect friends you have, I guarantee that no one around you is privy to the “Fed’s” playbook.

    Keep up the excellent writing my friend, and the best strategy is a rigged casino is not to play.

    BTW….END THE FED.

  3. I remember Commerce One very well. I was actually in their Munich offices at one time before the dot com bubble burst and realized very quickly that they didn’t even have a viable product at all. That crap was so phony I couldn’t believe it.

  4. I am going to be gentle because I think your overall viewpoint is spot on, but shorting AMZN is a fool’s game. This stock, and the underlying market, will only peak and crash when the people shorting it are basically gutted.

    1. Depends. Ya I got spanked on my core short but I’ve made a lot of money shorting calls and puts and daytrading around my core short. Today I took 10 pts out – shorted at $450, covered at $445 – did that twice.

  5. If you´re short AMZN these days you almost have to wear adult diapers.

    What do you think Dave will the stock bounce back to the old 380 level?

  6. I was reading some comments from Wall Street analysts in regards of the AMZN spike in Marketwatch.

    There was no end to how rosy and bright the future for AMZN would be.

    Are these people totally braindead or just corrupt to the core?

    How will they defend themselves and their predictions when this thing blows up?

    I can´t even understand that someone are paying these idiots a salary.

  7. Dave, Don’t know if have seen this article concerning J.P. Morgan
    on going silver hoard. This coupled with everything else makes
    me think something is boiling under the surface. Just look at the
    amounts that they took delivery of over the past few weeks.
    Also Jamie Dimon’s statement warning of another financial
    meltdown. What’s up with not honoring cash at your bank ?
    Looks like we are entering the last day’s of Pompeii.

    http://theeconomiccollapseblog.com/archives/why-is-jp-morgan-accumulating-the-biggest-stockpile-of-physical-silver-in-history

    1. It’s interesting if you believe Ted Butler’s analysis. My view is that analyzing the silver market based on the COT reports is bordering on useless. The COT numbers are likely just as rigged as every other bank financial report. There’s no check and balance to make sure the banks are reporting valid COT and vault numbers. In fact, JPM has already been caught rigging the COT numbers and very gently wrist-slapped by the CFTC.

      I’ve debated the issue with Butler before and he’s never been able to defend the validity of the COT numbers with anything other than the requirement of “faith” the numbers are as reported, prima facie. Given that the banks fraudulently their numbers in every other business segment in which they operate, why should we have “faith” that the numbers they report to the CME – note: all Comex/COT reports are generated from data provided by the banks themselves – are the ONE area of their business that they report honestly? There is no good reason

      Butler’s reason for defending the validity of the numbers is because his whole newsletter that he sells and makes a lot of money from is based on the numbers provided to the world by the banks. He has no choice but defend the bank reporting on the Comex.

      Having said that, I do believe – and again I do not have hard proof – that the big banks like JPM are indeed stockpiling physical gold/silver in vaults in Singapore and Hong Kong. These banks are run by people with no country allegiance. Their only allegiance is to making money. All of the major bullion banks have opened up operations in Singapore and Hong Kong and are applying to become active members of the SGE. I believe they already are members of the yuan-based Shanghai futures exchange.

      I have no doubt they have accumulated healthy slug of bullion – but not on the Comex.

      The Comex is STRICTLY for purpose of using paper to manipulate the price of gold/silver using paper.

  8. Hey Dave, thanks for your advice to short Amazon! This is fun! After the freak spike last Friday I shorted lots of AMZN, and now I’m having fun watching the robots keep trying and failing to bring the Amazon Spike back to life!

  9. A song about what is happening right now to those who are “Buying The Dips” of Amazon. Just because you can still occasionally come up for a desperate gulp of air in your final moments, doesn’t mean you’re not drowning:

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