let's talk our way through the charts right now with matt shapiro, this guy. he runs mws capital. matt, we have google surging into the stratosphere. here comes amazon close on its heels. what was it, up 7 yesterday?! > > almost 3% yesterday. and the thing about amazon, its a valuation rule-breaker, because you have to look into their cashflows and what is really going on with the company, because if you look at the p/e, it is over 100. such a big company like this, you wonder, can i buy it here? > that is a pretty big contrast. p/es typically are pretty low right now across the board. > > right. so the big secret in amazon is that it does $21 billion a quarter in sales, and that is growing rapidly, ramping up with the tremendous growth they have had in the holiday seasons. but the key statistic is their investment in the future, in these massive distribution centers, in contrast to the stories coming out about how poorly wal-mart has executed with that. so the statistic is their cash flows, which is $4 to $5 billion, when the stock keeps on rising, the smart analysts are of course

here for a look at the market, matt shapiro, president of mws capital. good morning matt. it wasn't too long ago you were on the show, and you were talking about the s&p 500 going to 1600. that doesn't seem so out of the picture now. are you sticking with that? > > absolutely. the underpinnings of the market, and i think what 2013 is going to become known for, is a shift in embracing again equities after years of such high anxiety. i have come across a chart the shows how high the market can go after these extreme periods where there has been a rush into fixed income, and i think we are kind of unwinding that. that is one of the big underpinnings, along with, of course, a good economic recovery and good corporate earnings. > what do you think about a recent call someone made saying that the s&p could go to 1700 this year. is it possible? > > i would hope so. but that is going to be tough. i am looking at the 1600 level. but remember the '80s and '90s, when the s&p 500 was 100. then it went to 300, then it went, of course, to 1500 in 2000. but think about it, 12 years later

matt shapiro, president of mws capital, joins us on the show this tuesday morning to take a closer look at the markets. matt, i have to ask, is the party over? people are getting so negative all of a sudden. > > you mean because the market went down yesterday? > that's all it did. > > it's funny. the market doesn't go down very much, and when it does, people are ready to abandon ship, and it shows you, even though valuations are low, there is still a lot more room to go higher. but, it does say that the market is not just going to reward low valuations. we need continued economic progress, continued good earnings. and i do look for that in the second half of the year. yesterday i think the market just lost its nerve, especially with the stuff going on in cyprus and the eurozone. there have been a couple misses in earnings last week, especially oracle and fedex, that got some investors worried. > what goes through your mind as you see a day like yesterday though? news coming in from cyprus - is it news or is it noise to you? > > for me it is noise, angie. i am very confident in our inves

joining us now, matt shapiro, president of mws capitol. what kind of a signal is this giving to investors? this stock has struggled of late. had a great day yesterday. what do you think? > > you know, actually i have been talking about this stock a lot to my clients, because we own it, and what is going to happen going forward? i am actually really positive. if you look at the fundamentals of apple, they are very good. its p/e is low, it still has an incredible franchise and a lot of business momentum, and of course, you throw in the catalyst of them raising their dividend, and the stock could easily get to $500. so, a lot of people abandoned the stock, gave up hope, but look what happened. you had a little window to get, $420, $430, and now it is rising. > so you think it is ramping up? do you see it going to $500? at what level did you buy this stock? > > i bought it at about $90 several years ago- > oh, you're killing us. > > -and i pruned it back though a little too early around the $400 level. it went to $600, and some of my clients w

matt shapiro, president of mws capital, joins us now for chart talk. i have to say, you have been on the show, and you have been warning people that it was time to get in. you mentioned this a couple of weeks ago. but do you have to say to those people now? > > well, you have to take a look, and you still have to consider getting into stocks. the train seems like it has moved out of the station, but i want to get to the situation where you are not running after it. there is still time to get in. this is one of the strongest rallies we have seen since the early '90s, and it is not second- and third-tier stocks that are rising, angie. it is big blue chips: procter and gamble, kraft foods. the fabric of america is going up. let me tell you about a stock i am buying in the dow at an all- time high: travelers. insurance company. conservative, boring, going up. so, there are lots of stocks you can still get involved in. > what could go wrong with an insurance stock, matt? > > well, any stock like traveler's is exposed to catastrophes. they paid out almost $1