PCLN & AMZN: Stop Busters Revisited

From September 30 on PCLN:

"Stop busters are (1) a takeout of the 169.00 high at Wave 5, and then (2) the top of pattern, which comes in today at 170.04, particularly a CLOSE above the latter...

PCLN reversed into the close, so The Bears using a CLOSE above the pattern got a break, but they sure had a knuckle-biter on their hands, intraday."

Both PCLN and AMZN give testimony to the difficulty involved with shorting in a bull market. PCLN sold off from its last attempt to get through the top of the channel, but it double-bottomed in the 158's and "it's ba-a-ack" in The Bears faces.

Wednesday was a new CLOSING high for the stock. Thursday was a CLOSE above the channel and a new high for the move. That's mighty tough on the shorts. Yesterday was a close back inside the channel so The Bears have some hope that a reversal to the downside has begun, but I get a little worried when I find myself "hoping" for something.

From September 30 on AMZN:

"The problem that The Bears have in AMZN is that yesterday's rally was the third move above the top of the pattern, and it also was the third CLOSE above the top of the pattern. The Bears are vulnerable to a squeeze here, especially if AMZN goes pounding through the 94.40-94.50 highs. They need to knock this back inside the channel."

The Bears managed to knock AMZN back inside the channel for a few days, but like PCLN, "it's ba-a-ack," and the 94.40-94.50 highs got taken out to the upside yesterday. That's the fourth close above the top of the channel, so as we've discussed before with this stock and with the SPX and MZZ, the top of the channel isn't acting as reliable resistance, as it should.

The Bears have a problem here with the CLOSE above 94.40-94.50 resistance and the top of the channel. They obviously need to knock AMZN back inside the channel again.