I have spent some time lately collaborating on a research project with Arun Chopra, a good friend who holds a CFA and CMT. Together, we have been blended fundamental indicators with technical indicators and key market themes to highlight opportunities in the market. Today, we’ll look at a chart of the FANG stocks (Facebook, Amazon, Netflix, Google) that shows why investors should remain cautious and focused here.
The FANG stocks are heavily followed and invested in. Â Check out the middle chart below – look at the spike in “FANG stocks” with Google trends.
As well, the stocks continued higher in spite of the broad market top last summer.
De-FANG’d: Â Family Feud?
Here are a few key bullets/takeaways about the FANG stocks chart below:
- There is a dangerous divergence that started in Summer 2015 to the broad market.
- Momentum FANG stocks ramp higher, while broad market tops and rolls over.
- Two of four FANGs (Netflix and Google) have disappointed 1Q16. Facebook and Amazon are on deck.
The broad market movement from here may well depend a good deal on the “FANG Family”. Will there be an earnings/guidance family feud? To be continued… $FB, $AMZN, $NFLX, $GOOGL
Thanks for reading and best of luck out there.
More from Jason & Arun: Â Chart Of The Day: Bear Market? Or Different This Time?
Twitter:Â Â @JBL73
The authors do not have a position in any of the mentioned securities. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
