 Welcome traders to another TickMill earnings report preview with me Patrick Munley. Before we jump into today's report, as always, I want to adhere to the risk disclaimer. Most pertinent to today's presentation is the fact that the views expressed by me are solely mine and they are not indicative or representative of those held by TickMill UK or TickMill Europe Limited. Okay, let's jump into today's report and we are looking at Amazon. Amazon will report after the New York closed today looking for an EPS earnings per share of $0.14 on revenue of $119.45 billion. Vessas will be paying close attention to how ongoing inflation is affecting the company's top and bottom lines. Revenue, as it says, expected at just over $119 billion, up 5% year-over-year with EPS down from last year's $15.12. Amazon CEO Andy Chasi cited inflationary and supply chain pressure in the company's first quarter earnings report, which saw its slowest growth rate for revenue in more than two decades. Shares fell more than 10% following Q1 earnings in April. Amazon may report lower than expected revenue for Q2 due to macroeconomic challenges. While rising inflation can benefit Amazon's retail businesses by resulting in higher pricing and marketplace fees ranging from 8% to 15%, markets believe that the sheer magnitude of inflation in the second quarter directly led to lower consumer discretionary spending while revenues not related to Amazon Web Services could decline by 2-5% year-over-year. Unless JP Morgan said in a report that Amazon would still gain share in a recessionary environment given low prices, wide selection of fast delivery, it added that the company's cloud business, Amazon Web Services, may provide a boost. Despite tougher macroeconomic conditions, JP Morgan continued to expect Amazon to have accelerating growth in the back half and to show margin progress as it works through elevated costs with Amazon Web Services should provide proof to be more resilient, though not immune to a broader slowdown. Amazon cited inflation as it announced an increase for the cost of prime membership in Europe. This week it bumped prime membership fees to $20 in the US in February. Amazon is also dealing with rising labor costs. In September, the company said it was raising average hourly US wages to $18 an hour for warehouse workers. Amazon said in February that it would more than double the max-based pay for corporate and tech employees to $350,000. It does not announce hiring freezes or slowdowns like other tech giants such as Apple and Google. Amazon employs 1.6 million people worldwide. It hired 337,000 people in 2021 alone. Earlier this year, Amazon announced a 5% fuel and inflation surcharge for sellers on its marketplace who used the company's shipping services due to an unexpected increase in costs. Shares of Amazon are down maybe 30% this year and made a broader market turn down. The company's 20-storey quote-to-one stock split went into effect June 6. Shares initially rose more than 5%, but are now trading back at a similar price of $120. Let's take a look at some of the statistical trading patterns around the Amazon earnings release. Amazon shares have moved lower in the immediate aftermath of earnings, 9 out of 12 previous reports. On average, the stock moved down 1.4% in the first day of trading after the company reports earnings. Based on the previous 12 earnings releases, Amazon is more likely to trade lower one day after the earnings release for an average loss of 0.4%. On average, the stock has moved higher 0.1% one week after earnings. Let's see what the options market is pricing in terms of volatility around the release. Options traders are pricing a 6% move on earnings and the stock has averaged a 5.5% move in recent quarters. From a flow and sentiment perspective, some interesting and noteworthy flows here. There has been notable buying 35,959 contracts of the $120 call expiring on Friday. Options order flow sentiment in general has turned bullish. Investor sentiment going into the company's earnings release has 55% expecting an earnings B. Amazon share price has drifted down 1.5% post its prior earnings announcement. Using the last 12 quarters of data, the average drift between earnings announcements is 4.6%. Let's pull up the charts here and see if we can identify any near-term trading opportunities in the Amazon stock. Obviously, we've been in this sharp decline visible on the weekly chart here. We appear to be in a corrective phase at the moment. On the daily, we have a triangle pattern developing with a nice pop yesterday in line with the border market pop. For me, in terms of the trading opportunity here, I'd be looking at any break through the triangle resistance here at $124.50 to engage on the long side. Paying attention to how we trade at $128 because that's an equality objective versus the current swing structure. If we can get through there, I look for a gap fill up into the $138.20 level. From there, I'll be watching for bearish reversal patterns as in line with the border market. I still think we have further downside to see in coming quarters. The downside objective for me would be this $89 level, which is this high volume node on the weekly chart. Certainly, if we got down there, I'd be paying close attention to how we trade, watching for daily and weekly reversal patterns. That could be a very interesting level for me anyway to look to acquire and build longer-term positions in Amazon as we look for recovery in coming quarters. At this stage, it would really take a loss of the high volume node here at $109.50 for me to engage on the short side, targeting that $89. But whilst we trade above that level, I'm looking for a pop to the upside before the next leg lower. As always, traders plan the trade, trade the plan, and most importantly, manage your risk. Until next time, thanks very much.