NEW YORK (TheStreet) -- It's getting crowded behind the first-quarter earnings woodshed as the seven stocks profiled today are down between 28% and 57% from their 2014 intraday highs. Trying to buy stocks after they've declined so far so fast is like trying to catch a falling knife.
This is difficult when all seven are below their five-week modified moving averages and their 21-day, 50-day and 200-day simple moving averages. Three are above their 200-week SMAs, but three are recent IPOs and thus do not have enough price history to have 200-week SMAs.
You never know when these stocks will become momentum stocks again, but we have "crunched the numbers" to help you decide whether or not to buy weakness to value levels or to sell strength to risky levels. Another problem is that four of seven do not have value levels.
Amazon (AMZN) ($292.71) is down 28% from its 2014 intraday high at $408.06. The stock traded as low as $286.68 on Wednesday with this week's value level at $283.97. The weekly chart is negative but oversold with its five-week MMA at $321.50. Our annual value level is $259.67 with annual and semiannual risky levels at $334.95 and $351.24, respectively.American Online (AOL) ($34.85) is down 35% form its 2014 intraday high at $53.28. AOL missed analysts' earnings per share estimates by 8 cents before the opening bell on Wednesday and broke below its 200-day SMA at $40.99 at the open and traded as low as $32.31. The weekly chart is neutral with its five-week MMA at $41.56 and its 200-week SMA at $28.58, which is a good level at which to catch this falling knife. 3D Systems (DDD) ($49.11) is down 50% from its 2014 intraday high at $97.28. The weekly chart is negative but oversold with its five-week MMA at $54.14 and this parabolic bubble has clearly popped. Weekly and annual value levels at $38.06 and $33.80, respectively, are levels at which to catch this falling knife. We have an annual pivot at $52.19 with semiannual risky levels at $57.37 and $77.78. Groupon (GRPN) ($5.33) is down 57% from its 2014 intraday high at $12.42. The stock got crushed to as low as $5.18 on Wednesday on weaker-than-expected earnings. The weekly chart is negative but oversold with its five-week MMA at $7.29. We do not show a value level but have a weekly pivot at $6.53 and a monthly risky level at $8.01. Pandora (P) ($21.17) is down 48% from its 2014 intraday high at $40.44 then traded as low as $21.47 on April 28. The weekly chart is negative but oversold with its five-week MMA at $26.91. A weekly value level at $18.82 is the price at which to consider catching this falling knife. Quarterly and monthly risky levels are $28.89 and $38.45, respectively. Twitter (TWTR) ($30.66) is down 57% from its 2014 intraday high at $70.43 then traded as low as $29.51 on Wednesday. This is a recent IPO, so we do not have a 200-day or 200-week SMA. The weekly chart is negative but oversold with its five-week MMA at $42.34. A quarterly pivot is $34.36 with a monthly risky level at $76.09. Whole Foods Market (WFM) ($38.93) down 33% from its 2014 intraday high at 49.18. Whole Foods missed analysts' EPS estimates by 3 cents before the opening bell on Wednesday, and the stock plunged to as low as $37.31. The weekly chart is negative with the five-week MMA at $48.56 with the 200-week SMA at $40.71. We show a weekly pivot at $48.29 with monthly and quarterly risky levels at $56.69 and $58.99, respectively.
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