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 / ReutersThe 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. Follow @suttmeier This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV