Morning Comment: Update on the FAANG charts.
- Yesterday’s decline was meaningless. Today’s action should be equally meaningless.
- The FAANGs continued to be leaders early in 2019, but lost that status in the spring.
- However, those FAANG stocks have regained A LOT of momentum over the past several months.
- They’re all overbought near-term, but their action over the next 4-6 week should be critical.
- A look at the updated charts on all of them (FB, AMZN, AAPL, NFLX & GOOGL).
Yesterday’s decline was meaningless. Today’s action should be equally meaningless.
The decline in the stock market we saw yesterday was pretty meaningless….as it came on very low volume of only 2.05bn shares. To be honest, unless we get some incredibly surprising last-second news, it’s going to be hard to decipher anything from today’s action either…as the last day of the year rarely sees much pick-up in volume……With this in mind, we thought we’d talk about the most important stocks from 2017 & 2018 (the FAANGs….FB, AAPL, AMZN, NFLX and GOOGL). No, they were not the most important stocks of 2019, but all five of them sit at key technical junctures as we move from 2019 and into 2020…and they are still very important stocks! Therefore, we thought this would be a good day to update at these key names today.
The FAANGs continued to be leaders early in 2019, but they lost that status in the spring.
Before we update those specific charts, we’ll quickly review the action in the FAANGs as a group over this past year. It’s weird, if we went by memory, we’d say that the FAANGs lost their position as THE leadership stocks for the broad market very early in the year. However, that’s not accurate. Over the first four months of 2019, they kept their leadership ...