So I was out there today talking to folks about Amazon (AMZN) today. I'm not a fan of the excessive valuation but I've certainly already spent more than enough time talking about that. So I'd like to take a look at things from a technical perspective here, and show you something that might concern you. In the chart above, the blue line is Amazon, and the others are the 3 major U.S. Indices for comparison. Today was a meaningful news day for the entire stock market, as we had the Fed meeting, and they came out and raised interest rates a tiny bit. So that's good, we have some clarity now on what the Fed is doing. Let's take just a moment to talk about what the markets are doing here. One of the big problems in choosing individual stocks is related to the action of mutual funds, especially market-cap weighted index funds. They buy a larger percentage of stocks with high market caps, and also sell more of those stocks on bad days. Chartists used to like to use a measurement called "Beta Coefficient" to gauge risk, and if you're not a charts guy, I'll cover it for you real quick. Beta is a measure of volatility. It compares how fast a stock moves up or down against the broader market. Amazon here has a beta of 1.5. That means, on average that for whatever amount the market goes up or down, Amazon moves 150% of that. On average, based on the stock's history. So the thinking here is that if the market is in an uptrend, you should buy those high beta stocks and you should make big profits, right? Not so fast there, risk takers. Now, in the context of what I said a moment ago about index funds making these larger and larger purchases, sooner or later, that is going to place you in a dangerous spot. When you look at what's happening on this chart for the first hour of the day, the stock is going down at a faster rate than the markets. If the Fed had not given a positive message today, this stock could have been down big. Short sellers are seeing this action, and they're going to start placing short orders in at the end of each trading day, hoping to ride the stock down at the start of the next day. Index funds rebalance their holdings from time to time to prevent this kind of risk from getting into your portfolio. Eventually they will chop the size of this holding down, probably to an allocation that's 1/2 of what it is today. You add that selling pressure on top of the people who are going short, and all of a sudden, if you're a long-term holder, you are at risk of seeing a ridiculous drop in the value of your holding here. If you have made good profits on Amazon stock, be smart and diversify some of that money into other holdings. Take your winnings off the table before someone else does it for you. Nobody ever lost money selling at a profit. For more reasons why you should stop buying Amazon's magic beans, read this article. Best of luck to everyone.