Amazon Trade Update

After AMZN experienced that 2-day mega spike higher, I took a nice sized short position in the stock. My goal was just for a short-term trade, as I felt the outsized move was unjustified and overdone.

I figured it was all a big short squeeze, and that the stock would likely give back a few points very quickly. But after a few days, it didn't fall at all. A look at the chart above shows that the stock just hovered in a state of suspended animation.

That worried me, so on Wednesday I closed out my short position for a tiny loss. Today, the stock is moving higher again, and breaking above its recent highs. I think this is a good example of employing risk management to your trading.