As sectors like Energy, Financials and Materials have been the leadership into the new year, what should we make of the stagnating trends in the FANMAG (a.k.a. FAANG) stocks?
While other sectors have continued to outperform and see subsequent higher highs, these mega cap names in Communication Services, Technology and Consumer Discretionary have been in consolidation mode.
In today’s video, we will break down how investors should be considering the FANMAG trade going forward into 3 parts (see chart below video):
1. What would indicate a transition from consolidation phase to accumulation phase for this group of stocks
2. Three key signals to look for as signs of improvement in the charts
3. Why NFLX’s earnings beat this week may be the catalyst to move the group higher
$FANMAG Video – “One Chart”
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$FANMAG Charts
Twitter: @DKellerCMT
The author may have a position in mentioned securities at the time of publication. 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.
