Opportunity to buy after technology stock lags

FANG shares (Facebook, Amazon, Netflix, and Google Alphabet) posted a 7% retracement during the August auctions, while Apple Inc. adjusted only by 3.5% of the peak in 2017. However, many other sales of assets in August, SP500 remained relatively stable and registered a new peak at the beginning of the month. Currently, the SP500 is traded at around $2505 and is expected to record All Time High at the end of the session.

The resulting divergence is the result of several things, the main one being that in the first seven months of the year, the FANG group recorded a growth of an average of 30%. On the other hand, many Wall Street analysts, as well as prominent hedge fund owners, felt the end of the bullish market in the technology sector was very close. Last but not least, the rumors and moods around the ECB and the Fed, which from now on will seek to pursue stricter monetary policy, drive investors to move some of their money into the financial sector that is increasingly giving signals of recovery.

Fundamentally and technically, the shares of the FANG Group are well-performing and this correction and divergence gives us an exceptional opportunity to buy the shares.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

Bloomberg: FANG Stocks Take Repeated Hits and the World Keeps Spinning

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