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Time to Double-Dip Apple Shares

Chart Courtesy of Thomson / Reuters

Throughout the pop above $800 Google maintained a hold rating and today's fair value is $638.66, which makes the stock 21.8% overvalued within the 9.0% overvalued computer & technology sector. The ValuEngine one-year price was just above $840 back on March 6 and is $820.20 today. The stock's 12 month trailing P/E is 22.89 with a 12 month forward P/E of 19.53. My quarterly value level is $732.99 with this week's risky level at $818.01. The weekly chart for Google shifts to negative with a close this week below the five-week MMA at $789.50. This will signal that Google has lost its mojo status.

Amazon remains the sell-rated stock among the three musketeers of the mojo world. After setting an all-time high at $284.72 back on Jan. 25, Amazon has been trading sideways to down to a low of $252.07 on March 22.

Chart Courtesy of Thomson / Reuters

The problem with Amazon as March began is that the ValuEngine models caught up with the fact that the stock's 12 month trailing P/E is 2,901.6 with a 12 month forward P/E of 157.21 and trades at 21 times book value. Amazon is certainly not a value stock, and has already lost its mojo status. A close this week below its five-week MMA at $262.22 would keep weekly chart profile negative.

You can still employ a buy-and-trade strategy on Amazon ($261.14) as the stock has semiannual and annual value levels at $241.23 and $226.80 with this week's risky level at $264.15, and my quarterly risky level at $278.28.

Given the recent underperformance of Apple, Amazon and Google, it should be difficult for the S&P 500 to sustain gains above its October 2007 intra-day high at 1576.09.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
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