Santa Claus Rally Eyed for Online Leaders Apple, Amazon and Google

TheStreet.com

NEW YORK (TheStreet) -- The big-three tech-related names in today's headline hit the skids following third quarter earnings reports but recently held key technical levels.

It's time for another look as Black Friday sales accelerating short-term mojo could be the beginning of this year's Santa Claus rally led by these names.

Google GOOG ($669.97) has a buy rating according to www.ValuEngine.com, and was profiled Oct. 16 in Handicapping Key Earnings Reports. Google set an all-time high at $774.38 on Oct. 5 and was sliding going into its quarterly report on Oct. 18. Google missed EPS estimates by 17.2%, which accelerated the slide after a higher opening high at $706.70 on Oct. 19.

I updated this profile Oct 24 in Missed Corporate Revenue Signals QE Fatigue. In both stories I mentioned that Google was above its 200-day simple moving average.

A test of the 200-day SMA on the downside is almost always considered a buying opportunity for a buy-and-trade strategy. Google tested this moving average at $638.41 Friday. The upside is to the 50-day SMA at $709.21 given a weekly close above the five-week modified moving average at $680.90. My weekly value level is $659.15 with a monthly pivot at $679.57 and quarterly risky level at $713.85.

Google has improved shopping apps and updated Android maps for an enhanced holiday shopping experience. You can create shopping lists, view products with 360-degree views, find promotions and coupons, and use new maps for about 10,000 stores.

Amazon.com AMZN ($233.78) has a buy rating according to ValuEngine. I profiled the stock Oct. 23 in Apple, Amazon Face Tougher Scrutiny Reporting Earnings.

Amazon set a multi-year high at $264.11 on Oct. 14. Amazon reported quarterly results Oct. 25 with a much larger than expected loss missing EPS estimates by 187.5%. Investors liked the growth story and the stock popped from a $222.92 close that day to an opening high at $238.71 on Oct. 26. Investors and traders had the opportunity to reduce positions at my semiannual pivot at $236.23.

I updated this profile Oct. 30 in Trading Earnings Volatility and in both stories mentioned the annual pivot at $236.23 and that Amazon was above its 200-day SMA.

A test of the 200-day SMA at $219.57 occurred last Thursday, providing a buy-and-trade strategy. Now the stock appears ripe for a re-test of its semiannual pivot at $236.23, and above this pivot is the 50-day SMA at $243.84. A weekly close above the five-week MMA at $236.10 enhances the upside potential. My weekly value level is $218.67 with my semiannual pivot at $236.23 and quarterly risky level at $263.71.

Forrester Research projects a 12% increase in online sales this holiday season, and Amazon.com should be a major beneficiary as up to 25% of smartphone and tablet owners buy on their mobile devices. Sales of their Kindle products should be on "Fire" and their online Black Friday deals feature video games for Nintendo, PlayStation and Xbox 360 platforms.

Apple AAPL ($560.91) has a buy rating according to ValuEngine, and was also profiled Oct. 23 with Amazon. Apple set its all-time high of $705.07 on Sept. 21. Apple also announced quarterly results Oct. 25 and reported a slight EPS miss of just 1.4%.

I also updated this profile Oct. 30 but on Nov. 2 Apple failed to hold its 200-day SMA then at $590.33. Last week I had a weekly pivot at $538.56, which provided a level at which to buy on Thursday.

Consider booking profits on strength to the five-week MMA at $586.46. Away from these moving averages I show weekly and semiannual value level at $487.12 and $481.73 with my quarterly risky level at $674.21.

Even Apple announced worldwide Black Friday sales featuring iPads, Ipods and Mac gifts. Last year their deals included $101 off on iMac, MacBook Pro and MacBook Air systems, but all you know about this year's Internet-based door-busters are on teaser pages at their online stores.

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

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

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