They’re neutral on FAAMG and FAANG shares, while the momentum crowd is still very bullish.
Technology stocks have been hot this year. And excellent earnings are expected when big companies start reporting this week.
Given the momentum and aggressive buying by the momo (momentum) crowd, expectations are widespread that earnings will be the catalyst for another leg up in popular tech stocks.
My longtime readers have been asking about what the smart money is doing ahead of earnings. In my view, this is the right line of inquiry for prudent investors. The smart money — professional investors — pays attention to both risk and reward. The momo crowd is often oblivious to risks.
Please click here to see a chart showing the smart money’s actions in eight popular tech stocks. This includes FAAMG and FAANG stocks. FAAMG stocks are Facebook FB, Apple AAPL, Amazon AMZN, Microsoft MSFT, and Google GOOG, GOOGL. The FAANG acronym includes Netflix NFLX, and excludes Microsoft. The table also includes Advanced Micro Devices AMD, and Nvidia NVDA, as investor interest in those two stocks is high.
Notice from the chart that money flows are positive from the momo crowd. However, the smart-money flows are neutral. Here is how I interpret the smart-money flows at this time…Read more at MarketWatch
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