Amazon, Google Have Lost Their Mojo

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.

The weekly chart for Amazon shifts to negative Friday, given a close below the five-week MMA at $292.71, if weekly momentum declines below 80.00. Today the 12x3x3 weekly slow stochastic reading is 80.97, so it may take another week to signal that the stock has lost its mojo. The 200-week SMA is at $197.21.

Amazon ($286.47) was downgraded to sell after setting its all-time high, but today the stock has a hold rating, according to ValuEngine. The stock is 30.7% overvalued, which is a long way from being considered a value stock. The stock has an extremely elevated 12-month forward P/E ratio of 162.5 and is trading at 21.3 times book value.

After testing my semiannual risky level at $313.60, Amazon is trading between its quarterly value level, at $272.68, and my monthly pivot, at $292.46. My annual value levels are $226.80 and $172.56, with a semiannual risky level at $324.33. Keep in mind that Apple is trading between its annual pivots, at $421.05 and $510.64.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at