The market made a marginally higher high today and it looks like new highs will be coming early next week as well. There's an ascending triangle that targets 2128, so perhaps we'll get a solid break out early next week. The NASDAQ also made a substantially higher closing high, thanks in part to Amazon which rallied 14% after their announcement yesterday. So sentiment going into the weekend is bullish and will continue to be bullish next week.
Now, speaking of Amazon. This is one of the very few companies I would be comfortable holding long term if it ever goes down. Despite the fact that they don't seem to announce profits much, they are technically very profitable but keep investing money in growing revenue. And on that benchmark, Amazon is a behemoth at $90 billion per year. Apple which is almost 4x as expensive going by market cap, grosses $200 billion. Eventually we will see profit margins at AMZN approach those of major tech companies and its stock could easily double or triple from today's close. So if there's ever another big crash, this one will be on my shopping list.
Lastly, I wanted to share the following graph which I found interesting. This is from an article on forward PE (not to be mistaken for trailing PE) and historical returns. Going by this, history is definitely not on the bearish side.
Have a great weekend!
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Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish