This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Amazon, Google Have Lost Their Mojo

Stocks in this article: AAPL AMZN GOOG

NEW YORK ( TheStreet) -- So far this year Apple (AAPL), Google (GOOG) and Amazon (AMZN) 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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs