Thanks to the good folks over at Bespoke for bringing us today’s chart of the day. Ben Bernanke doesn’t see any bubbles anywhere, but some of the leaders of this market would disagree. The action in stocks like, Price Line, Apple and Amazon have investors chasing bubble fever once again. BIG reports:
While we’re on the topic of stocks, take a look at a historical chart of Amazon.com (AMZN). After breaking to all-time highs following its recent earnings report, the stock hasn’t looked back and has pretty much gone vertical. The steepness of the increase in Amazon.com’s share price since last November definitely brings back memories of its rise during the late 90s Internet bubble. Hopefully the memories of its subsequent fall don’t reappear as well.
Who knows where money managers will drive this market in the coming 6 weeks, but stocks such as Amazon and Apple likely represent a microcosm of the overvalued and bubbly feeling this market has taken on in recent months. Charts like these never end well. Never. Losing leaders like Apple and Amazon would be a crushing blow to the market. Warning sign or outlier? You decide….