An Epic Triple-header Tonight

Stocks are bouncing as I write this, with bulls taking advantage of a relative lull during a busy week. 

That said, tonight begins the final spurt of events into Friday morning's jobs report, pre-market. 

But first, the big three report tonight: Apple, Amazon, and Meta. 

All three are obviously part of the "Magnificent 7" leadership which has represented, easily, one of the most crowded trades at the top of the market since the Nifty Fifty bubble roughly fifty years ago.

Incidentally, that Nifty Fifty bubble also occurred during the early stages of a prolonged period of inflation in America, where investors/economists/Central Bankers mostly assumed (and high and mighty finance journalists, too) that inflation had peaked when, in reality, it had roughly a decade to go before it was finally beaten back. So, I certainly see parallels between then and now. 

With this in mind, Amazon is the most expensive of the three which report tonight, although AAPL has been weak of late and META's rally since November 2022 has become patently absurd. AMZN trades with a forward PE ratio of 42. 

Further, as seen on the monthly chart, below, I view the rally going back thirteen months now as representing a "right shoulder" of a massive top, coinciding with when Jeff Bezos stepped down as CEO. 

I recognize AMZN has eaten many retail plays, and I myself use Amazon just about every week. 

Be that as it may, eventually the stock divorces from the firm, which was the main lesson from the dot-com bust which many folks never learned.