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Apple, Amazon and Google Earnings Preview

NEW YORK ( TheStreet) - Let's straighten out financial TV about hyping Friday's closes for the Dow industrials and S&P 500 as new all-time highs. These indices did not end the week at new all-time highs! Three of the five major averages remain below their May 20/May 22 all-time highs at 15,542.40 Dow industrials, 1687.18 S&P 500 and 6568.41 Dow transports.

I am not saying that new all-time highs are out of the question.I have been saying that if you cannot confirm cycle highs, then new highs are likely. To confirm market highs, all five major averages need to have negative weekly chart profiles, and that has not happened. Weekly momentum (12x3x3 weekly slow stochastic) readings are now rising again with weekly closes well above the five-week modified moving averages at 15,101 Dow industrials, 1630.2 S&P 500, 3451 Nasdaq, 6290 Dow transports and 990.29 Russell 2000.

This week's value levels are 14,981 Dow industrials, 1608.4 S&P 500, 3445 Nasdaq, 6070 Dow transports and 994.17 Russell 2000 with monthly pivots at 15,437 Dow industrials, 1669.0 S&P 500, 3510 Nasdaq and 1030.75 Russell 2000 and a monthly risky level at 6758 on Dow Transports.

My quarterly value levels are 14,288 Dow industrials, 1525.6 S&P 500, 3284 Nasdaq, 5348 Dow Transports and 863.05 Russell 2000. My annual value levels are 12.696 Dow industrials, 1348.3 S&P 500, 2806 Nasdaq, 5469 Dow transports and 809.54 Russell 2000. My semiannual risky levels are 16,490 Dow industrials, 1743.5 S&P 500, 3759 Nasdaq, 7104 Dow transports and 1089.42 Russell 2000.

New all-time highs are thus feasible as my semiannual risky levels are 16,490 Dow industrials, 1743.5 S&P 500, 3759 Nasdaq, 7104 Dow transports, and 1089.42 Russell 2000.

Stock market fundamentals do not justify sustaining new highs, as the ValuEngine valuation warning continues to intensify. We now show that 75.3% of all stocks are overvalued with 41.7% overvalued by 20% or more. We also show that 15 of 16 sectors are overvalued, 13 by double-digit percentages.
[Read: <a target="blank" data-add-tracking="true" href="http://www.thestreet.com/story/11976914/1/buy-yahoo-ahead-of-earnings.html?kval=dontmiss"><em>Buy Yahoo! Ahead of Earnings</em></a>]

In this environment the momentum stocks must lead, and between July 17 and July 25 this test will be front and center. Here are my profiles of five mojo stocks:
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