So I ran out of the office after the Close to grab a couple of slices of pizza.  By the time I got back AMZN was trading up 5 points.  About six traders on the desk were actively trading it in the after hours.  I quickly gathered some information from those who had been watching it.  There was selling at 55 and 55.10.  We were all going to get long above 55.10.  When the seller lifted AMZN traded up fairly easily to 56.

I find trading in the after hours somewhat easier than market hours if a stock is truly In Play.  There are only a few patterns that take place in the after hours based on an earnings report and there are no annoying computer programs.

Today,  AMZN was following the classic pattern of a stock being accumulated after a good earnings report.  A quick multi point pop followed by strong up legs when any significant level lifted.  The day traders and hedge funds buying the stock all were looking at the same long term chart.  They saw no major resistance until the 58 to 60 area.

I was able to make some good money long from 55 to 57.  Then I gave a lecture to our newest trainees on trading a stock in an uptrend.  When I came back to the desk AMZN was trading at 56.70.  This is very bullish for tomorrow.  There is a good chance that it will gap up further in the premarket.  Stocks that close the after hours near their highs tend to gap up higher the next morning.

In our AM Meeting AMZN will be one of the featured stocks for tomorrow.  The ideal trading pattern would be profit taking on the Open down to the 54.50 to 55 area.  Then an explosive move up to 57.  Ultimately,  if AMZN were to trade up to 58.30 or higher it will offer great opportunity to the more skilled traders on the desk.

Regardless of its trading pattern tomorrow there will be money in AMZN.  It will move a minimum of 4-6 points intraday and it has a very tight spread.  Traders need not risk more than 10 cents on any given trade.   But it has the potential to move one dollar plus if you have a good entry point.