Amazon in a Precarious Spot

Amazon and Apple report after the bell. Leaving aside extreme outcomes, even a modest miss by Amazon could break a support line that goes back to 2017. Next support below is at $65, though it rises over time. Apple has support in the $120s, but my eye is drawn to the ratio wedge. If Apple misses earnings, the might be enough to break the wedge. When that goes is when Apple is clearly in the process of being dethroned as market leader.

I sold half the Apple puts I bought yesterday because I've almost doubled my money. The rest is free ride.

Update: Amazon fell as much as 20 percent on terrible guidance. Apple wasn't great, but stock is holding up ok with either small single-digit losses or even flat at times. Tomorrow morning's PCE will be the make or break news event for the day. It should come in weak and help a little, maybe not a enough. If it comes in hot, then Cleveland Fed is probably too conservative for October too. That'll kill any talk of a pause/pivot.