` Gary Investing Blog: 5 Stocks to Trade in 2013: AAPL, AMZN, WAC, ZIP, ZNGA

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Wednesday, December 26, 2012

5 Stocks to Trade in 2013: AAPL, AMZN, WAC, ZIP, ZNGA

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Apple, Inc. (NASDAQ: AAPL) has continued its downtrend after the death cross and negative CMF crossover. Currently, Apple is approaching its major support at $500. I do not suggest to long Apple just because it is fundamentally cheap. On technical point of view, it is undergoing Elliot Wave C, which is about 1/3 longer and more price depreciation than Elliot Wave A. Given that Wave A drops from $700 to $533 ($167 drops), technically speaking Wave C could send Apple to $400 in 2013.

Amazon, Inc. (NASDAQ: AMZN) After quickly rising from $220 to $263.11, it dropped 3.86% today. It is a possible double top on chart but I would not initial a short position until it crosses below MA(50) again. After break below MA(50), I will have a short term target of $218.18 until further confirmation by then. Bearish MACD crossover. CMF is about to cross below zero. RSI crossed below 50 centerline. Amazon's chart is giving me a very bearish impression. If going short, stop at around $260.00.

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Walter Investment Management Corp. (NYSE: WAC) I told you on Dec 21st about the exhaustion showing on WAC and its possible head and shoulder pattern on chart. I believe the H&S pattern is fully formed. WAC is temporarily showing support from MA(50) but I think it will eventually breaks below given that bearish MACD crossover, RSI crossing below 50 level and the significantly volume in the recent 5 trading days. Giving the short selling restriction, any bounce back would be a great opportunity to go short WAC. Stop at around $46.00.

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Zippcar, Inc. (NASDAQ: ZIP) is showing a bullish ascending triangle on chart with decreasing volume along the formation. CMF crossed above zero. MA(200) is bottoming and MA(50) is picking up quickly. If using closing prices to draw the triangle's neckline, ZIP broke above the pattern technically. However to be safe, I suggest setting an entry order at $8.9 (or even safer at $9.0). A break above $9.0 would easily send the stock to $10.00 level. Keep an eye on Zippcar, Inc.

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Zynga, Inc. (NASDAQ: ZNGA) has closed above MA(50) yesterday and the whole candlestick is above MA(50). Connecting the higher lows gives us a definite short term uptrend and a great level to entry NOW. MA(50) is showing saucer bottom. Stop at around $2.25.

Thank you for reading,

Gary Lee
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2 comments:

  1. With Zynga I just don't see much downside. They will probably recover in 2013. I recently shared my 3 stocks that you should sell now . Keep up the good work.

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