Jim Cramer is often asked about Amazon and Netflix. Individual investors love the stocks, in part because they've generated whopping returns over 5 years, but worry if they buy at current levels, they could lose their shirts.
That's because both are growth stocks and trade at high multiples. Typically conventional metrics, such as profits, aren't reliable barometers for growth stocks; in turn it's difficult to determine whether shares will advance or not.
Although Netflix is now positive for 2014, Amazon is not, although sentiment may be changing. Given how difficult these stocks can be to hold, what should you do?
Jim Cramer always makes his ultimate investment decisions based on fundamentals, however, in difficult situations such as these, he turns to technical analysis for insights. The following technical analysis was provided by Tim Collins, one of Cramer's colleagues at RealMoney.com.