Loading ...R.I.P. FAANGS
It didn’t die without a noble fight but yesterday’s action confirmed that the FAANGS are dead. If you are lucky enough to see a bounce in the next few days, buy PSQ. GOOG is the only one that hasn’t actually formed a top. The rest of the biggies have either topped and or broken down. The NDX com
pleted a triple top and is toast.
Excellent calls, Sir Chartsmaster!
PSQ, and SQQQ, are both going to be good short term vehicles.
What is your exit point for PSQ? Assuming you already have some …
GL
You can also buy FNGD.
I am long PSQ and as posted if the NDX gets a bounce, which it should when the DJIA closes at 30,000, I will buy more. Not thinking of an exit point. The NDX has just completed a triple top after a ridiculous multi year bull market. Would be looking for at least 50% from the highs.
LOL, I’m almost interpreting that as SQQQ is a buy and hold for may be an year, we’ll see … might unload some if it goes to 2.5X my tiny investment.
Never hurts to generate some cash, especially in the circumstances when you’ve received a USD 13,100 property tax bill !!!
And the biggest “return” on that property tax, the schools, are closed !
How much more can I take it on the chin, and pay through my nose, in the great state of CA, where all these FAANGs-generated millionaires, and even some billionaires, reside?
GL
Why anyone would stay in Marxist Kalifornication unless married to a job/business blows my mind. Not only is it a cesspool leftist marxist idiots, it serves as a solidified beachhead to wreck the rest of the USA. I love the California geography and the national parks there, but will never visit that place again. I cannot fathom contributing one nickel to the American Cuba.
Even the S&P intra-day low today is very interesting, 3511 … just 2 points over the close on Friday 11/6, which was 3509. It magically bounced from 3511 to 3549, as of 12:08 pm Eastern.
NDX has posted a triple top. Correct call!
But on the S&P even a weekly reversal could indicate the start of at least a (short-term) downtrend? What is some negative news is released? Market can blame in on Trump, but negative news is negative news.
Replying to my own post … S&P again turned negative
Would you also recommend buying SRTY? Just as some insurance 😉
https://finance.yahoo.com/quote/SRTY?p=SRTY
“almost interpreting that as SQQQ is a buy and hold for may be an year, we’ll see ”
I want to go on record as dissenting from the broad assessments in this thread.
I will agree that shorts like these may reward someone holding for up to a year.
But IMO, they will be painfully underwater before they can cash out.
So I’m not a shortside buyer at this juncture. Maybe in Jan/Feb.
Fair enough, Sir Pedro.
Your opinion rhymes with some others who are calling for a broad spectrum descent in all indices (DJI, S&P and Nasdaq) starting around March 2021.
GL
I agree pedro. I would not want to be holding a triple leveraged ETF like SQQQ for anywhere near that kind of time frame without being able to have a good idea when it might pop. The thing is the indices have tremendous upside potential still. The DOW charts very comfortably up into the 39.000 range. Notwithstanding we may see a correction it is still a correction that should be bought in my opinion.
Even the suggested pattern (a triple top) does not convince me because I don’t see this pattern as being anything like a termination top. Indexes don’t usually do that anyway as they are not stocks. To my eyes we have a form of square flag pattern developing over the past three months on all the major indices which I see as continuation patterns, not a signal of a huge drop in market impending.
Some people call the look of this kind of pattern a coil or spring. Price is consolidating around an area of supply in that case but not threatening a crash. So I would be very cautious taking out shorts except over very brief time periods and only where the setups are clear and have merit.
Absolutely not (at this time)Now that the FAANGS have topped, the rotation is into the smaller cap value stocks. You don’t want to be shorting them and especially NOT with leverage. They are going to out perform for a good while after under performing for years. They may go down but it will be much less than the overvalued and over owned FAANGS
Excellent perspective!
My take was, that many of the Russell 2000 companies may have terrible earnings, even for 3Q ’20 and 4Q ’20, and many may not survive this forced recession.
But you sound quite right, sector rotation, as advised by the money managers, may take some ( a lot ??) of the profits from big tech and advise more conservative holdings, which make up both S&P 500 and Russell 2000.
Let’s see, from now until next 7 weeks, to the end of this dreadful year.
GL
This is why it pays to folllow the ValueLine Geometric equal weighted chart. The perspective is entirely different as it considers small, medium and large caps together. On that chart I see it rising to 542 by this coming Friday November 13th before taking a rest and correcting somewhat.
Agree Chartsmaster.