Amazon.com Inc AMZN achieved remarkable success on Thursday. AMZN experienced a boost from strong consumer spending figures, with retail sales surging 1% in July.
The positive trend continued on a yearly basis as retail sales jumped by 2.7% compared to a downwardly revised 2% in June. Notably, jobless claims also decreased, contributing to an overall improved economic outlook.
While Amazon faced challenges with its second-quarter earnings, reporting mixed results and softer guidance, the recent retail data provided a silver lining amidst economic uncertainties such as inflation and rising household debt.
Investors considering AMZN stock have options through Direxion’s specialized ETFs, strategically designed to capture both bullish and bearish sentiments towards Amazon’s performance in the market.
Direxion’s AMZN-Focused ETFs: Direxion offers Direxion Daily AMZN Bull 2X Shares AMZU for optimistic investors, aiming to double the daily return of AMZN. Conversely, Direxion Daily AMZN Bear 1X Shares AMZD provides an inverse daily return of AMZN for those adopting a bearish stance.
Both AMZU and AMZD are best suited for short-term trading due to the compounding effect inherent in these leveraged funds.
Insights into AMZU and AMZD Performance
The AMZU ETF: Despite a slump post-Amazon’s Q2 results, AMZU witnessed a notable uptick following the positive retail sales report. The chart analysis indicates a potential upward trajectory, with key levels such as the 200-day moving average attracting bullish interest.
- AMZU broke above its 20-day exponential moving average and eyes the 200-day moving average.
- Market attention shifts to the $32 level, a strong support zone throughout the year.
AMZD ETF Analysis
The AMZD ETF: Prior to Amazon’s Q2 disclosure, AMZD faced downward pressure. Following the retail sales data, the bearish sentiment seemed to stabilize, indicating a possible shift in market sentiment.
- AMZD dipped below crucial moving averages, highlighting technical weakness.
- Maintaining the $14.18 support level is critical for the bears to prevent further downside.
Image by Esteban Rodriguez from Pixabay.
