I last wrote about the
FAANGs and
FNGU and what I was monitoring in my
post of November 4, 2018.
2018 was the year we saw the
FAANGs form
bearish shooting stars.
Each candle on the following charts of
FB,
AMZN,
AAPL,
NFLX and
GOOG represents a
period of one year (absent on these charts is
2019's candle, as I've left it off to illustrate last year's weakness and volatility compared with prior years in these stocks).
You can see, at a glance, that
FB is the weakest of the five, as it has erased almost all of its
2017 gains, as well as its gains
last year.
Each candle on the following chart of
FNGU represents a
period of one quarter. Also absent on this chart is
2019's Q1 candle.
FNGU is an exchange traded note that tracks
3x the daily price movements of an index of US-listed technology and consumer discretionary companies...the index is highly concentrated and equally weighted. It is comprised of the
5 FAANG stocks + 5 tech stocks, namely,
BABA,
BIDU,
NVDA,
TSLA and
TWTR.
As of the end of last year, it had
erased all of its gains since it began trading in January 2018, and more.
Each candle on the following charts of
BABA,
BIDU,
NVDA,
TSLA and
TWTR represents a
period of one year. Also absent on these charts is
2019's candle.
None of these stocks had a good year in
2018, either. In fact,
BIDU has lost all of its gains made since
2014 and has taken a bite out of gains made in
2013, and
TWTR closed out the year
still lower than its IPO price in 2013.
Each candle on the following charts of the
FAANGs represents a
period of one quarter. Also absent on this chart is
2019's Q1 candle.
We've seen the
FAANGs lead the equity markets higher prior to
Q4 of 2018 (and
Q3 in the case of
FB and
NFLX), then lead them lower during
Q4.
There's been some short covering in all
10 stocks, so far, in
2019 as shown on the following
1-Year daily charts (including
FNGU and the
SPX).
However, it remains to be seen whether prolonged and serious buying will continue in these stocks so as to propel them to reclaim a leadership role, once again...or whether this is just a short-term dead-cat bounce. I'd keep a close watch on
FB,
AAPL and
GOOG, in particular, as further weakness could have a knock-on effect on some (or all) of these, as well as equities, in general.
We'll also see how much longer
TWTR can survive, whether
BIDU will ever make a comeback...and, whether
FNGU will continue to trade much longer if general weakness persists in its 10 stocks.
