NYFANG trade ideas
NYSE FANG+ Index Is In A Five-Wave Bullish ImpulseNYSE FANG+ Index, which consists of Facebook(Meta), Amazon, Apple, Netflix, Google, Microsoft, Tesla, Nvidia, AMD and Snowflake, we see it still in strong bullish trend with room for more gains within a projected five-wave cycle. Currently we can see it slowing down within subwave »iv« correction that can find the support around 7500 – 7400 area before the uptrend for wave »v« of 3 resumes.
NYSE FANG+ Index: wait is better⌛' The NYSE FANG+ Index is a rules-based, equal-weighted equity benchmark designed to track
the performance of 10 highly-traded growth stocks of technology and tech-enabled companies in the
technology, media & communications and consumer discretionary sectors'.
Companies included in the index:
Meta, Apple, Amazon, Netflix, Microsoft, Google, Tesla, NVIDIA, Snowflake and Advanced Micro Devices.
Graphically speaking, I would expect a better definition of which way the price is going.
Looking at the Stochastic Momentum Index, I would say that opening a long position would be too risky.
Below are some possible scenarios:
Scenario 1:
Scenario 2:
Scenario 3:
Scenario 4:
Scenario 5:
FAANG INDEX BREAKS DOWNAs typical with bear markets the unprofitable "growth stocks go first, followed by the profitable stocks on high multiples and the overall index is saved by the large caps due to their weighting in the index.
The FAANG index has now broken down and is looking at a minimum 34 percent loss.
The index decline will be accentuated by further losses in the first two categories even though they may seem relatively cheap compared to ATH.
Any stocks with stretched balance sheets, and survival dependent on Capital Raisin in the next 18 months will simply go out of business.
NYSE FANG+ INDEXIf the index doesn't move above 7422 in February, then I see a high possibility that it will fall below the January low... If not in February, then in March and April.
In this context of the red ABC correction, the red C corresponds to 1.38% fib of the red B.
This schema could serve as an orientation for the Dow and the NASDAQ 100, because they could show similar development.
Compelling entry for FANG+ related fundGrowth stocks like FANG+ members will definitely prevail in the post COVID-19 world where cost of funding (interest rate) will remain Near Zero for Longer, investors' appetites for yields/risky assets could be high and slow global recovery (growth will be preferred).
