11:30 pm (EST)

Amazon.com (AMZN, $76.00, up $2.50) continues its march higher despite another downgrade this morning. Barclays Capital lowered its rating from “Overweight” to “Equal-weight” with a $70 price target. They went on to say that Amazon has outperformed the market by 60% since December. And?

The stock also got a downgrade last week which was when we went long on the April 80 calls (ZQNDP, $1.62, up $0.49). We got into this position last Friday at 90 cents and they have not disappointed us. The stock is facing strong headwinds at $80 and bears are trying their best to take Amazon lower.

If the tug-of-war continues, somebody is going to get pulled into the mud. Right now, the position is up 75%-ish so we probably need to start thinking of taking profits. You could monitor the stock from here on out and set a stop of $1.35 which guarantees a 50% return. Do that now.

As far as Celgene (CELG, $40.40, up $1.93)….whew! We took one for the team yesterday by buying a stock making fresh 52-week lows but it has paid off in a good way. The bounce back above $40 was honey on the lips as the April 40 calls (LGHDH, $1.95, up $0.80) have now doubled. Many of you got into this one at 80 cents to $1.00 so go ahead and sell at least half the position and put a stop of $1.25 on the other half. Or, sell it all and just worry about the May 40 calls (LQHEH, $3.40, up $0.95).

The May 40’s could have been bought for $2.00 and under and up 70+%. Set stops at $3.00.

The market is rolling as the Dow is up 275 points and is above the 8,000 level. Enjoy the gains and feel free to email me with any questions or comments.

Rick Rouse