FAANGs: Jul 14, 2020

Note: CPI came in right on target: +0.6% unadjusted over the last 12 months. The MoM figure also rose 0.6% – driven, as expected, by the 12.3% increase in gasoline prices.

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The last time I wrote a post including all the FAANG stocks was in November 2018 [see: FAANGs – Now or Never.]  Several of them FB, AAPL, AMZN, NFLX and GOOGL were in trouble from a technical standpoint.  GOOGL, for instance, had just completed a death cross and the stock had broken down from a 10-year old rising wedge.The S&P 500 itself was also in a bind, having dropped through its 200-DMA and struggling to remain above its 2.24 Fibonacci extension at 2703. As it turned out, it couldn’t. It shed another 14% (20% from the Sep 2018 highs) before being rescued by the Plunge Protection Team.  Most of the FAANGs had similar troubles.

GOOGL, at 1071.05 at the time, dropped 24% from its July 2018 highs and tested its March 2018 lows and completed a huge H&S Pattern targeting 707 before magically finding its footing. It has since piled on another 500 points, with two  downturns along the way turning the rising wedge into a rising channel [it just needed a global pandemic and a horrible recession to help it along] which is once again offering overhead resistance. What about the rest of the FAANGs? Any other warning signs that we should be watching?  Glad you asked.

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