Santa Claus Rally Eyed for Online Leaders Apple, Amazon and Google

NEW YORK (TheStreet) -- The big-three tech-related names in today's headline hit the skids following third quarter earnings reports but recently held key technical levels.

It's time for another look as Black Friday sales accelerating short-term mojo could be the beginning of this year's Santa Claus rally led by these names.

Google (GOOG) ($669.97) has a buy rating according to www.ValuEngine.com, and was profiled Oct. 16 in Handicapping Key Earnings Reports. Google set an all-time high at $774.38 on Oct. 5 and was sliding going into its quarterly report on Oct. 18. Google missed EPS estimates by 17.2%, which accelerated the slide after a higher opening high at $706.70 on Oct. 19.

I updated this profile Oct 24 in Missed Corporate Revenue Signals QE Fatigue. In both stories I mentioned that Google was above its 200-day simple moving average.

A test of the 200-day SMA on the downside is almost always considered a buying opportunity for a buy-and-trade strategy. Google tested this moving average at $638.41 Friday. The upside is to the 50-day SMA at $709.21 given a weekly close above the five-week modified moving average at $680.90. My weekly value level is $659.15 with a monthly pivot at $679.57 and quarterly risky level at $713.85.

Google has improved shopping apps and updated Android maps for an enhanced holiday shopping experience. You can create shopping lists, view products with 360-degree views, find promotions and coupons, and use new maps for about 10,000 stores.

Amazon.com (AMZN) ($233.78) has a buy rating according to ValuEngine. I profiled the stock Oct. 23 in Apple, Amazon Face Tougher Scrutiny Reporting Earnings.

Amazon set a multi-year high at $264.11 on Oct. 14. Amazon reported quarterly results Oct. 25 with a much larger than expected loss missing EPS estimates by 187.5%. Investors liked the growth story and the stock popped from a $222.92 close that day to an opening high at $238.71 on Oct. 26. Investors and traders had the opportunity to reduce positions at my semiannual pivot at $236.23.

I updated this profile Oct. 30 in Trading Earnings Volatility and in both stories mentioned the annual pivot at $236.23 and that Amazon was above its 200-day SMA.

A test of the 200-day SMA at $219.57 occurred last Thursday, providing a buy-and-trade strategy. Now the stock appears ripe for a re-test of its semiannual pivot at $236.23, and above this pivot is the 50-day SMA at $243.84. A weekly close above the five-week MMA at $236.10 enhances the upside potential. My weekly value level is $218.67 with my semiannual pivot at $236.23 and quarterly risky level at $263.71.

1 2 Next › Last »