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How high can Amazon go? Legendary trader sees 10% pop on top of today’s surge

This is not a picture of an Amazon bear.

Betting against the tech titans is not working yet again — unless you shorted Baidu.

Earnings-driven surges by Amazon, Alphabet, Microsoft and Intel have put the stock market on its way to ending the choppy week on a cheery note, though a reading on third-quarter GDP will factor in as well.

How high can they go? For Amazon, one key is that it has extricated itself from a bearish chart structure, according to veteran trader Peter L. Brandt, who provides our chart of the day.

Jeff Bezos’s baby had etched a head-and-shoulders formation, but now there has been a “classic” failure for that pattern, Brandt writes.

His price target for Amazon AMZN, -0.05% is now $1,149. The online giant’s stock is jumping 7% in premarket action to around $1,043, so that target implies adding about 10% to this morning’s leap.

Brandt, often called a “legendary trader,” is also talking about the potential for a “

” by the broad market.

Other Amazon watchers say the company’s guidance for the holidays, along with its Prime Day and AWS results, helped soothe Whole Foods-related fears.

Plus, the e-commerce juggernaut’s potential move into the pharmacy business might even be the real reason behind CVS Health’s CVS, -2.94% $66 billion bid for insurer Aetna AET, +11.54% .

Classic bearish investor: I shorted

because they have a high P/E ratio via

Jeff Bezos: pic.twitter.com/czsF07TIYE

— Stephen Burns (@SJosephBurns)

And see: Amazon, Google, Microsoft and Intel find billions more in profit

And see: ‘Like stealing away from a party through the backyard’ — analysts react to ECB move

The call

“The U.S. Navy can sail the oceans to their heart’s content, the action is now on land,” say the money managers at London-based Clarmond Wealth in their “postcard from a brave new world order.”

They offer the graphic above on China’s “One Belt, One Road” economic initiative, saying Beijing has made “a conscious decision to bypass the seas” in its push to create a global infrastructure.

“China is attempting ‘the project of the century.’ And as I am served a cool lemonade at the Club, a final remnant of the British Empire, it is another empire — the American empire — that may be taking its last few sips of leadership,” reads the postcard, which comes as the U.S. Navy has three carrier groups in the Pacific for the first time in a decade.

The third-quarter figure for U.S. gross-domestic product is on tap ahead of the open, and a report on consumer sentiment is expected once trading is underway.

On the political front, Defense Secretary Jim Mattis has denounced North Korea’s “provocations” while visiting the DMZ. Plus, nearly 3,000 JFK assassination files have released, but the Trump administration bowed to the FBI and CIA’s appeals to withhold hundreds of additional records.

The quote

Australian Deputy Prime Minister Barnaby Joyce may be wishing for a cold one.

“I was always prepared for this outcome. It is a tough game, politics. ... Now I am going to make sure that I don’t cry in my beer.” — Australia’s deputy prime minister, Barnaby Joyce, reacts to a court ruling today that has ousted him from his parliamentary seat.

Joyce and other lawmakers have been waylaid by an obscure rule barring federal elected officials from holding dual citizenship, and now Australia’s conservative government has lost its majority grip on power. The country down under faces weeks of political turmoil.

Two women from Hawaii were just rescued after being lost at sea for months.

These Virginians are the first triplets to earn the Eagle Scout rank — and they’re blind.

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