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Amazon, Google Have Lost Their Mojo

NEW YORK ( TheStreet) -- So far this year Apple (AAPL - Get Report), Google (GOOG) and Amazon (AMZN - Get Report) have been playing a game of leapfrog in terms of mojo trading and setting new all-time highs. As I wrote Thursday in Apple Shifts to Mojo Status From Value Stock, Apple returned to mojo leadership this week, breaking out above its 200-day simple moving average at $468.29. Apple as a mojo stock appears headed for my annual pivot at $510.64.

Google set its all-time high, at $928.00 on July 15, three days before missing earnings estimates by $1.29, earning $7.75 a share. This is when the stock began to lose its mojo. Some Wall Street analysts had to be embarrassed after raising price targets to $1,000 before this disappointing earnings report. Google traded back and forth around its 50-day SMA since reporting results, until this week, when the stock stayed below this average, which is now a resistance, at $891.44. The downside is to the 200-day SMA at $800.85.

The weekly chart for Google shifts to negative today, given a close below the five-week MMA, at $883.77. The stock already has declining weekly momentum, with a 12x3x3 weekly slow stochastic reading, at 64.01. Remember that readings declining below the overbought threshold of 80.00 are negative. The 200-week SMA is at $623.17. I mention this as Apple's huge correction ended with a test of its 200-week, the week of June 29.

Google ($859.66) has a hold rating, according to ValuEngine, and is 26.9% overvalued, which is a long way from being considered a value stock. The stock has an elevated 12-month forward P/E ratio of 22.2 and is trading at 4.7 times book value.

When the stock was above $900, it traded just above my quarterly risky level at $915.63, where "buy and trade" investors could have booked profits. The stock is now trading back below its semiannual pivots at $892.48 and $880.49, which should limit the upside from here. I do not show a value level at this time.

Amazon was the last of the three mojo stocks to set its all-time high, and did so at $313.62, on July 26. Investors initially forgave the company's earnings miss of 6 cents, reporting a loss of 2 cents on July 25. Then on July 27, profit-taking began. The all-time high was a test of my semiannual risky level at $313.60, which was the price at which "buy and trade" investors should have sold.

Amazon did not trade below its 50-day SMA until Thursday, with a gap below this average, at $290.59. The downside is to the 200-day SMA at $266.54.

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