Apple, Amazon, Alphabet, Facebook Have Lost Their Mojo -- Here's How to Trade Them

As stocks rallied following last week's election, Apple (APPL) , Amazon (AMZN) , Alphabet (GOOGL) and Facebook (FB) bucked the positive stock market momentum and now have negative weekly chart profiles.

Each ended last week below the key weekly moving averages, with weekly momentum readings declining below the overbought threshold of 80.00. Closes this week below $111.00 on Apple, $772.92 on Amazon, $792.05 on Alphabet, and $123.60 on Facebook will keep the weekly charts negative.

Facebook and Alphabet are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB or GOOGL? Learn more now.

On Nov. 4, the weekly charts were flashing warnings that these four benchmark momentum stocks were losing their mojo. This makes it extremely important to focus on daily charts, using Fibonacci retracements and key trading levels from my proprietary analytics.

Here's today's momentum stock scorecard.

 

Here's the daily chart for Apple.

Courtesy of MetaStock Xenith

Apple closed Wednesday at $109.99, up 4.5% year to date. It is in correction territory, 18.2% below its all-time intraday high of $134.54, set on April 28, 2015. The stock is also in bull market territory, 22.9% above its May 12 low of $89.47.

The horizontal lines are the Fibonacci retracements of the decline from the April 2015 high to the May 2016 low.

Since the low, Apple recaptured its 23.6% retracement of $100.13 on May 26, which was a magnet until July 21. After dipping to its 50-day simple moving average of $97.21 on July 26, the stock gapped to its 200-day simple moving average of $103.72 on July 27 on a positive reaction to earnings. The 38.2% retracement of $106.71 has been a magnet since Aug. 5. The 50% retracement of $112.02 has been a magnet since Sept. 14. The 61.8% retracement of $117.34 was a ceiling between Oct. 11 and Oct. 25, with a high of $118.69 set on Oct. 11.

A negative reaction to earnings on Oct. 25 caused a price gap lower on Oct. 26. At the low of $104.08, the stock was just above its 200-day simple moving average of $104.01. Note how my annual pivot of $110.22 has been a magnet, including at the high of $110.23 on Wednesday.

Investors looking to buy shares of Apple should do so on weakness to $99.94, which is a key level on technical charts until the end of 2016. My annual pivot of $110.22 remains a magnet. Investors looking to reduce holdings should consider selling strength to $114.12, which is a key level until the end of November.

Here's the daily chart for Amazon.

Courtesy of MetaStock Xenith

Amazon closed Wednesday at $746.49, up 10.4% year to date. It is in correction territory, 11.9% below its all-time intraday high of $847.21, set on Oct. 6. The stock is also in bull market territory, and is 57.5% above its Feb. 9 low of $474.

The horizontal lines are the Fibonacci retracements of the rise from the February low to the October high.

Since the high, Amazon slipped below its 50-day simple moving average of $797.46 on Oct. 28 on a negative reaction to earnings reported after the closing bell on Oct. 27.

The stock tested its 23.6% retracement of $758.87 on Nov. 4 and has been below this key level since Nov. 11. The Nov. 14 low of $746 was above the 38.2% retracement of $704.26 and above its 200-day simple moving average of $701.25.

Investors looking to buy Amazon could have done so on weakness to $721.28, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should sell strength to $806.78 and $852.72, which are key levels on technical charts until the end of next week, and until the end of 2016, respectively.

Here's the daily chart for Alphabet.

Courtesy of MetaStock Xenith

Alphabet closed Wednesday at $779.98, up 0.3% year to date. It is 7% below its all-time intraday high of $839, set on Oct. 28. The stock is 16% above its June 27 low of $672.66.

The horizontal lines are the Fibonacci retracements of the rise from the June low to the October high.

Since the high, Alphabet plunged rather quickly. The stock traded around its 23.6% retracement of $799.54 between Nov. 1 and Nov. 10, and has been below this retracement and its 50-day simple moving average of $803.07 since then. The 38.2% retracement was tested at $775.30, which was recaptured again on Wednesday. The Nov. 14 low of $743.59 was below the 200-day simple moving average of $760.89 and the 50% retracement of $755.71.

Investors looking to buy Alphabet could have done so weakness to $770.77, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should consider selling strength to $822.38 and $854.86, which are key levels on technical charts until the end of November and until the end of 2016, respectively.

Here's the daily chart for Facebook.

Courtesy of MetaStock Xenith

Facebook closed Wednesday at $116.34, up 11.2% year to date. It is in correction territory, 12.9% below its all-time intraday high of $133.50, set on Oct. 25. The stock is also in bull market territory, 30.2% above its Jan. 20 low of $89.37.

The horizontal lines are the Fibonacci retracements of the rise from the January low to the October high.

Since the high, Facebook plunged quickly. The stock closed below its 50-day simple moving average of $127.29 on Nov. 2, then gapped below its 23.6% retracement of $123.08 on Nov. 3. The decline and gap lower was fueled by a negative reaction to earnings reported after the closing bell on Nov. 2.

The stock has been trading back and forth around its 200-day simple moving average of $118.56. The low of $113.56 and Wednesday's close of $116.34 are below the 38.2% retracement of $116.64.

Investors looking to buy Facebook should consider buying weakness to $111.44, which is the 50% retracement. Investors looking to reduce holdings should consider selling strength to $126.62, which is a key level on technical charts until the end of 2016.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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