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Chipotle and Priceline Lead Momentum Stocks While Tesla Lags

NEW YORK ( TheStreet) -- When you look at momentum stocks -- stocks that continue higher even though they may be overvalued fundamentally and overbought technically -- Chipotle Mexican Grill (CMG - Get Report) has been the leader since Oct. 1 gaining 26.3% since then. Priceline.com (PCLN - Get Report) is right behind and set an all-time high yesterday.

Meanwhile, Tesla Motors (TSLA) -- the biggest gainer over the last 12 months up 338.7% -- is down 28.1% since Oct. 1 as the stock's weekly chart profile shifted to negative at the end of October.

On Oct. 2, I wrote Apple, Google Lag Momentum Stocks and since then Apple (AAPL) gained 6.7% but in the process was downgraded to hold from buy according to www.ValuEngine.com. After Google (GOOG) reported its third quarter results the stock regained its momentum and beat Apple to the $1,000 a share price threshold.

On Oct. 28, I wrote A Closer Look at Apple, Google and 5 Really Big Stocks Over $200 when I added Chipotle and Priceline.com to my list of momentum stocks.

On Wednesday three of the five major equity averages set new intra-day all-time highs. Dow Industrial Average reached 15,822.98 and became overbought on its weekly chart and is 2.2% from its monthly risky level at 16,162 and 4.2% from its semiannual risky level at 16,490 and is up 20.7% year to date. The S&P 500 made it to 1782.00 just 1.2% from its monthly risky level at 1802.00 and 4.1% from its quarterly risky level at 1853.80 and is up 24.8% year to date. Dow transports reached 7,143.31 and is just 0.9% from its quarterly risky level at 7205 and is the year to date leader up 34.6%.

This is evidence that the Fed-induced equity bubble further inflated as Janet Yellen released comments to be presented to Senators this morning where she essentially pledged to continue current monetary policy. The stock market is now overvalued by 85.1% according to ValuEngine with 54.3% of all stocks overvalued by 20% or more. All five major equity averages now have overbought weekly chart profiles, as the stock market becomes a momentum driven casino.

President Obama pledged that if you liked your doctors and your health plan you can keep them under Obamacare. He also said that he would replace Fed Chief Bernanke with someone more friendly to Main Street. Opps! He said it again!

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SYM TRADE IT LAST %CHG
CMG $650.54 -0.74%
PCLN $1,164.15 1.25%
AAPL $124.43 -1.54%
FB $82.22 -1.18%
GOOG $548.00 -0.73%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

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