In my last Weiss feature, I discussed the prospect of Amazon being the first trillion dollar company.
Amazon moved much closer with it’s 13.7 billion acquisition of Whole Foods.
Whole Foods had been in somewhat of a tailspin until activist investors stepped in and got them thinking about some alternative options and eventually led them to Amazon.
While Amazon (+2.87%) and Whole Foods (+27%) shot higher, competitors went into a nose dive. As this is being written, here is some of the fall out:
Target (TGT): -4.42 (7.95%)
Walmart (WMT): -3.89 (4.93%)
Costco (COST): -10.43 (5.79%)
Kroger (KR): -3.09 (12.6%)
This inverse reaction will no doubt set off a chain of events.
These companies will either have to innovate to compete with the technology that Amazon will bring to the table or they will look for further consolidation.
This makes for a slippery slope as one stock could be headed for an imminent demise while another looks doomed to a similar fate until they find themselves on the surprise receiving end of a buyout offer.
As traders, this leaves us in a hands off position unless we take a different route to opportunity. You see, the risk is too high to be wrong on one of these individual stocks but there will certainly be plays to be made in ETFs.
With unprecedented money flowing into this arena, ETFs provide both diversification and opportunity.
If 7 out of 10 companies are on their way down, you can target an ETF to make sure you profit from this and are not exposed to the 3 companies that will find their way up.
In watching this 13.7 billion merger play out, I listened to 9 different experts respond. The most interesting question raised came from the current CEO of Gristedes, John Catsimatidis.
In a scene out of a horror movie, he simply said, “my bigger question is what’s next?” He went on to say that Amazon has the capability to wipe out the pharmaceutical industry.
I instantly looked up Walgreens (WBA) and found it was already down 4.36 or 5.28%. That presented another immediate opportunity. To take advantage, you have to learn the best ETFs to trade.
Here’s that report along with special training on how to use ETFs.
I put this success package together because learning how to trade this way is the difference between failure and success. I’ve been talking about ETFs for a while but just showing people this finally started to make a difference.
I hope it makes a difference for you because one thing we know for sure is that Amazon is just getting started.
Adam Mesh is CEO and Founder of The Adam Mesh Trading Group. For the past 18 years he has coached thousands of students to all levels of success in trading. He is also creator of the revolutionary Full Contact Trading.