The Nasdaq lost 3.3% yesterday (now -0.8%). Same variation for the super FANG index of the high tech titans: among the worst. The interest rate sickness has also affected the other indices, but to a lesser extent. The tech tsunami originated from the sudden acknowledgment of the end of the season of aid coming from the Federal Reserve. The minutes of the meeting of December 14-15 show that inside the U.S. central bank, there is open talk of a rate hike “sooner and faster” than expected to combat galloping inflation to favour stable economic recovery. A tidal wave of sales hit Wall Street’s high-growth sectors yesterday.

Amazon.com [AMZN.N], now at $3,260 (-0.1%) in pre-trading, is part of a very long-term uptrend, which actually started since its listing. However, prices have been consolidating since July 2020, despite having repeatedly hit marginal new records. The graphical picture both in absolute and relative terms suggests the continuation of the status quo, that is, with price fluctuations within the $2,900/$3,000 – $3,500/$3,800 band. The short-term trend has been downward for a few weeks. There are signs of deterioration below $2,870.

We recommend going SHORT on the stock and above all on any ideas towards $3,500/$3,600 by buying the Leverage Shares Amazon -1x ETP (ISIN: IE00BKT66S86), with a short-term target towards for short term target towards $3,200/$3,100 and later at $3,000/$2,900. Alert/stop loss should be above $3,800 (closing daily).