If retailer stocks have any month during which they tend to go up throughout the year, it is the month of November. November, of course, has the busiest shopping day of the year (the day after Thanksgiving) and online retailers have their own version of that day, which has become the Monday after the Thanksgiving weekend.
Amazon.com (AMZN) has typically done well during the month of November, and I expect this year to be no different.
Take a look at the weekly chart below:
Click to Enlarge
Although the recent gap up may correct itself a bit, if you are willing to hold on for a few weeks and up to 45 days, you’ll probably collect a nice profit on the flagship online retailer everyone will be mentioning in news stories for the next 60 days.
I’m bullish on retail sales this year and Amazon.com will be an obvious beneficiary.
By Tim Bourquin, trading content director, MoneyShow.com
