FANG. The term coined for owning all of the 4 horseman Facebook. Amazon. Netflix. And Google. This is what I think of all 4 of these currently.
First. If any of these drop 50%, especially Facebook, Amazon, or Google. You buy as much as you can! I know it’s hard to believe that any of these can drop 50%, however if you look at the charts 50% is not out of the realm of possibly in the next Bear Market.
Out of all of the options of FANG below I would rate the buy setups of them in this order…GOOGL, AMZN, FB, NFLX
Below is a chart of Facebook. This is a duly chart as all of these will be. As you can see it has broken below AND CLOSED below the 200 Day Moving Average for the first time in over 2 years. The 200 day moving average is “looked” at as institutional support and should be noticed. It has recently been a buy signal and for Facebook to continue this uptrend it will need to reclaim and close above 119-120. It does not necessarily mean it will go down. It could go sideways which is preferable after this monster run to setup up the next move. I believe that anything under 100 in the range of 80-90 is a MASSIVE buying opportunity.
Amazon is best in breed. It has not closed below the 200 day moving average yet. as long as it stays above then Amazon is a buy into the year end. I do believe Amazon is very stretched on long time frames and one will get a MONSTER buying opportunity around 550-600 at some point. However if we rally into year end it is hard for me to believe that will occur this Year.
Netflix is a mess. Ever since the monster run in 2013 and 2014 it’s been choppy. I think one would need to see it close above the high is 133 and right now it is in the middle of the range between 100-130. I would let it come down and test 105 and look for a buying opportunity there.
Google looks the best to Me. It has consistently made higher lows and gone sideways for a long period of time. Recently it went sideways for a couple months then had a failed breakout only to check back to the 200 day moving average. I believe money is going to be rolling out of FACEBOOK and AMAZON and into GOOGLE in the coming Months.