Apple Remains the Momentum Leader as Amazon, Google, Netflix, Tesla Lag

NEW YORK (TheStreet) -- Major stock indexes continue to set all-time highs, but among five popular momentum stocks, only Apple (AAPL) has both a year-to-date gain and a gain since Nov.12 when it was noted that momentum characteristics were changing.

Tesla Motors (TSLA) is still up 52% year to date versus Apple's gain of 45%, but Tesla is down 8.6% since Nov.12 while Apple is up 4% since then.

Amazon (AMZN) remains the biggest year-to-date loser with a decline of 21%. Google (GOOG) has fallen 4.3% so far this year, and Netflix (NFLX) has declined 3.5%, The Nasdaq Composite Index is up 14%.

Here's how to trade these stocks given the continued changing momentum characteristics.

Apple ($115.93) traded at an all-time high at $119.75 on Nov. 25 for a gain of 26% since trading as low as $95.18 on Oct.15. The stock is well above its 50-day and 200-day simple moving averages of $106.77 and $93.03. The weekly chart profile is positive but overbought with its key weekly moving average at $111.15.

Investors looking to buy Apple should enter a good 'til canceled limit order to buy on weakness at a key technical level of $102.40. Investors looking to book profits should enter a good 'til canceled limit order to sell on strength at another key technical level of $126.

Amazon ($316.50) traded as low as $284 on Oct.24, and then rebounded 20% to as high as $341.26 on Nov.28. Weakness this week has the stock below its 200-day SMA at $327.21. The weekly chart stays positive given a close on Friday above its key weekly moving average at $320.60.

Investors looking to buy Amazon should enter a good 'til canceled limit order to buy on weakness at the stock's 200-week SMA of $263.84. Investors looking to book profits should enter a good 'til canceled limit order to sell on strength at key technical levels of $344.35 and $372.35.

Google ($536.97) traded down 14% from $605.40 on Sept.19 to as low as $518.41 on Oct. 17; the stock is well below its 200-day SMA of $570.64. The weekly chart is negative with its key weekly moving average at $552.76.

Investors looking to buy Google should enter a good 'til canceled limit order to buy on weakness at key technical levels of $522.15 and $489.55. Investors looking to book profits should enter a good 'til canceled limit order to sell on strength at another key technical level of $589.85.

Netflix ($355.12) traded down 32% from its all-time intraday high at $489.29 on Sept. 9 to as low as $331 on Oct. 16. The stock is now below its 200-day SMA of $411.87. The weekly chart is negative with its key moving average at $381.15.

Investors looking to buy Netflix should enter a good 'til canceled limit order to buy on weakness at a key technical level at $341.55. Investors looking to book profits should enter a good 'til canceled limit order to sell on strength at another key technical level of $579.55.

Tesla Motors ($229.30) traded down 25% from its all-time intraday high of $291.42 on Sept.4 to as low as $217.32 on Oct.15. The stock is just below its 200-day SMA of $232.18. The weekly chart is negative with the key weekly moving average at $242.15.

Investors looking to buy Tesla should enter a good 'til canceled limit order to buy on weakness at a key technical level of $177.25. Investors looking to book profits should enter a good 'til canceled limit order to sell on strength at another key technical level of $286.05.

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This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

You can view the full analysis from the report here: AAPL Ratings Report

At the time of publication, the author held no positions in any of the stocks mentioned.

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