FAANG stocks are overbought and at the top of a 6 year trend channel. +/- 3 deviations to the mean highlighted by yellow trend lines. I've previously said that, of all the stocks, tech makes the most sense to have remained bullish through this period because of the additional user count that those platforms have seen over recent months...
But to be at the top of a range that is this well established? That is insanity. There is no way on this planet, that you will ever justify to me why any of these stocks (let alone all of them...) are 30% better than they were pre-covid...
What a mad world we live in
But to be at the top of a range that is this well established? That is insanity. There is no way on this planet, that you will ever justify to me why any of these stocks (let alone all of them...) are 30% better than they were pre-covid...
- Facebook makes money from advertisers. Marketing budgets get slashed during a recession...
- Apple makes luxury, discretionary products in a world that is seeing modern countries with 10% - 30% real unemployment...
- Amazon is the company everyone loves to hate, but at least they have a business model built for this particular event...
- Netflix, as above with apple, is going to struggle when people need to make decisions on which bills to cut...
- Google, as above with facebook, is reliant on money that should be drying up...
What a mad world we live in
