Markets react to Amazon

Although Black Friday sales numbers declined this year in brick and mortar stores, online sales rose to all-time high numbers. Amazon, the largest online retailer in the United States, was poised to do well in regards to online sales over the weekend following the biggest shopping day and the next Monday, what has come to be known as “Cyber Monday.” However, a recent report showed that Amazon did even better than the analysts expected. Amazon alone accounted for more than 30 percent of all online sales when looking at the official start to the holiday shopping season.

Over the coming weeks, this increase in sales is likely to give Amazon a higher valuation by analysts, and move the stock price up as a result.

Amazon has had a decent 2016. Over the course of the last 11 months, Amazon has risen by over $64 per share, a total of more than 9 percent in profits. The retailer has shown great strength as it secures more and more of the market share when it comes to online sales. A strong entertainment package and independent programming has also helped to attract people to the company through their Prime business model.

In mid-November, traders saw the 20 day exponential moving average converge with the 100 day EMA, and this triggered further price drops from what the company had already experienced over the few days prior to this. However, that trough appears to be in the past. Since the recent dip, the stock has risen to up over $785 per share. Currently, the stock price is going through another correction as the two EMAs have not diverged enough to excite traders, but prices appear to be rising up out of this newer (and higher) trough as of the time of writing. The company closed Friday, December 2, at a price of $740 and change per share. The price has dropped down below both of those EMA lines, which is yet another indication that the company is poised to go up even more in price in the coming weeks.

Regardless of the type of trading you do, whether you are a position trader in the traditional stock market, or you focus on 60 second binary options trades, you are probably well aware of the fact that ups and downs are completely normal in the stock market. This process is known as oscillation, and it refers to the fact that corrections in both direction are an ongoing process. There is no “perfect” price for a company, and even Amazon—where there is a lot of information about the company available—will never see its price stay steady for long. That is just the nature of the stock market as traders and investors scramble to keep finding the optimal price for an asset.

However, Amazon, and other major companies in the United States, should hold a large amount of appeal for binary options traders. When there is a large amount of information available about an asset, and when solid decisions can be made about where a company should go over the long run, both by looking at fundamental information about the company and by being able to predict how it will fare in the particular market that it occupies, we can make more intelligent trades. This applies most easily to the corporations that are traded at binary options brokers, but can be extended elsewhere. So, while a report saying that Amazon has captured more of the online sales market share than before might seem like something that wouldn’t interest a 60 second options trader, it should be paid close attention to.