3/15/2018 Review of Indexes and FAANG stocks

Hello, and welcome to my blog! Below I review the QQQ, DIA, SPY, and the FAANG stocks. I will add some good setups tonight if I have time, or at the end of tomorrow.

QQQ analysis 3_15_2018

I will start reviewing the ETFs that track the indexes instead of the actual indexes since you can’t buy “Nasdaq,” but you can buy QQQ.

QQQ is down a tiny bit and is actually up in after hours. This signals to me that the bears can’t push the price much lower and we are headed for a nice bounce upwards tomorrow (Friday). A close in the 173-174 range would be bullish and wouldn’t be too surprising.

Remember, Fridays have the highest up closes out of any day of the week (according to Bulkowski’s Blog).

 

DIA analysis 3_15_2018.PNG

DIA (Dow Jones) is actually up today. Although the volume is light, this signals to me that we will see a move of at least 100 points up tomorrow. DIA struggles with the 250-252 resistance level, and you can see visually in the chart above that that’s the neckline for the W formation that it is trying to complete. Conclusion is green tomorrow (up between .5-1%).

 

SPY analysis blog 3_15_2018.PNG

SPY, or the ETF that represents the S&P500 is down slightly. I expect a move higher like the other two indexes for this Friday.

 

3/15/2018 FAANG stocks below:

I will start reviewing the FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google) starting today because they represent over half of the QQQ. Predicting where these stocks go will allow us to predict the future price moves of QQQ.

FB analysis 3_15_2018.PNG

Facebook is running up into overhead resistance in the 185-187.5 range. The stock does not represent a good buying opportunity since the risk to reward here isn’t great. Buyers step in aggressively in the 175-178 range, so look to buy there with a stop loss near the 200 day SMA in the 170-172 range. This chart looks like the Dow Jones and S&P500 since they are running into the neckline resistance of the W formation.

Facebook is definitely the weakest of the FAANG stocks looking from a technical standpoint.

 

AMZN analysis 3_15_2018.PNG

AMZN somehow never drops, but I wouldn’t buy at these levels either. A pullback from all time highs to the 1500-1525 range (20 day EMA level) offers a good low risk opportunity to buy in. The stop loss would be just below the 1450 support level. Profit exit is around 1600, so for every dollar you risk here, you have two dollars of profit. This is a Reward:Risk of 2:1.

 

AAPL analysis 3_15_2018.PNG

AAPL recently broke out to an all time high a couple of days ago. Since AAPL is the biggest holding in the QQQ ETF (represents about 12% of the ETF), the QQQ and AAPL usually move together. Being patient here looks like the best choice. Buying in the 175-177 range offers a low risk buy opportunity.

NFLX analysis 3_15_2018.PNG

NFLX is basically like AMZN. It just hardly drops. Currently NFLX is consolidating near all time highs so this to me signals another move upwards. However, I wouldn’t buy NFLX until there is a pullback to the 295-305 level (again, this is near the 20 day EMA, which I will write about in a later post).

GOOG analysis 3_15_2018.PNG

GOOG was close to breaking out to an all time high but failed to do so. GOOG will probably consolidate like FB or move slightly lower. If it moves to the 1100-1120 range, going long would offer a good risk:reward.

 

Conclusion: AMZN, AAPL, and NFLX are the best candidates to buy on a pullback since they all made new all time highs. If you are aggressive, AAPL actually represents a decent entry now.

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