Retail Data Boosts Amazon Stock
Amazon.com Inc, under the ticker symbol AMZN, saw a surge in stock performance following robust consumer spending data for July. Retail sales exceeded expectations, rising 1% on a month-over-month basis and 2.7% year-over-year, alleviating concerns about weakening labor market conditions and stirring positive sentiment among investors.
Despite a setback from a lackluster Q2 earnings report and soft revenue guidance, a glimmer of hope has emerged for traders pondering the fate of AMZN stock.
Direxion’s Strategic ETF Offerings
Seeking to capitalize on Amazon’s narrative, Direxion provides investors with two exclusive exchange-traded funds dedicated to AMZN stock. For optimistic traders, there’s the Direxion Daily AMZN Bull 2X Shares (AMZU), aiming to double the daily return of AMZN. On the flip side, pessimists have the option of the Direxion Daily AMZN Bear 1X Shares (AMZD), offering the inverse daily return of AMZN.
Trading Strategies and Considerations
It’s important to note that both AMZU and AMZD are designed for short-term trading due to the daily compounding effect, which can erode value over prolonged periods. For AMZU, the recent positive retail sales report spurred a notable uptrend, with key levels to watch including the 200-day moving average and the critical $32 support line. Conversely, AMZD, which struggled post-Q2 earnings, faces a critical test in maintaining above the 50-day moving average to avoid further downside.
Featured image by Esteban Rodriguez from Pixabay.