I cringe every time I hear the word FANG being used but the stocks that make up this term are no doubt mega-cap, liquid monsters that have given the indexes a majority of their gains over time. It is what it is. I am not suggesting that these are the only reason the market is up this year because I feel the opposite. The breadth and sector rotation we are seeing is bullish as can be. So with this in mind here is what my eye sees in the FANG four horsemen.
WeeklyEvery since that gap up on huge volume in July 2013 (I remember watching that on CNBC way before I started investing), Facebook has just chugged along above its 65w moving average never producing any sell signals. We’ve held the 10w all of 2017 and are consolidating at ATHs here.
DailyOn the daily, Facebook has been one of the strongest of the four bouncing nicely off the 65d after that Friday tech sell-off. No issues here.
WeeklySimilar to FB, AMZN has been riding the 10w all of 2017. Into new ATH territory, I see nothing wrong going forward.
DailyFlash crash or not, AMZN caught a bid really quick at the 65d and went right back to the ATHs. The bar yesterday was ugly and I see some heavier sell volume but I don’t see a get short move here.
WeeklyNFLX is a beauty, riding its 20w since late 2016. After the base breakout to ATHs, I see nothing wrong up here as well.
On the daily, NFLX looks the worst to me. It has not bounced at all and looks to be struggling here at the 65d. More time is needed or it may come down some.
WeeklyThe GOOGL weekly remind me of the AMZN weekly. I don’t see anything to complain about up here.
DailyOn the daily, GOOGL didn’t even come close to touching the 65d. While fighting with the 20d now, this looks okay to me when you remember the weekly chart is just fine.
WeeklyAAPL – everyone’s favorite stock. Despite struggling a bit at ATHs and a pullback, we have more room to the downside where I still feel comfortable that this stock is fine. If we can’t hold the ~134 level, then I would be concerned.
DailySimilar to NFLX, AAPL isn’t bouncing much at all and is struggling at the 65d. Knowing what the weekly chart looks like, I wouldn’t be surprised if this one comes down more.
The theme? They all constructive if you zoom out to at least the weekly chart pointing higher in time. I don’t see how you could look at these 5 stocks and say the market is going to crash 50% as certain “guru’s” are calling for.
Time will tell if Tech as a whole needs more downside follow through or just consolidation but as a whole in other sub-sectors and leading names, it looks to me like I wants to continue to carry this bull market.
Note: Due to the momentum of this market, I have shortened up my moving averages to include the 10, 20, and 65 day and weekly. While the 200 is my favorite I feel it is too lagging for this environment.