The first half of 2018 was all about the FAANG stocks.
That’s Facebook, Amazon, Apple, Netflix and Google.
In fact, not only did they lead early in this year, they’ve lead for the last 5 years.
If you’ve been in these stocks, you’ve been crushing the market.
It didn’t matter which one you picked. For the most part they were all moving together.
However, the last half of this year has changed things in this big tech group. There’s been some bifurcation, as Amazon and Apple take the lead, while Facebook is getting crushed on data privacy related issues. Moreover, the big market correction has not been kind to these market leading momentum bellweathers.
Take a look at the massive drops over the past month or so:
What is notable is all of these stocks have had earnings, and for the most part earnings have been strong. Yet the stocks have still been crushed.
This can be taken in one of two ways.
It’s concerning because we expect a strong reaction, especially in the case of Netflix, which not only had strong earnings, but posted numbers that surprised the market. This usually sets up a huge run. Instead, the stock has cratered post earnings.
Apple is a curious case. It has been so strong that if you look at the chart you would not know the market has been catering. However, it’s got earnings coming up in two days. This will be a huge tell not only for the stock, but possible for the entire tech sector.
So let’s keep an eye on Apple earnings. It could not only impact the stock, but out other four FAANG stocks as well.
In today’s video, I show you the exact spots I will look to enter the FAANG stocks if we decide it’s time to take some bullish long positions. We discuss the key levels and which of the 5 stocks are out favorites. Watch, learn and let me know what you think!
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