FAANG stocks have been the generals of the bull market, leading the way. And when generals call for a change in direction, investors need to pay attention.
A big change is happening to FAANG stocks that every investor needs to know. The change is also spilling over into other sectors.
FAANG stocks are Facebook FB, Amazon AMZN, Apple AAPL, Netflix NFLX, and Google GOOG, GOOGL.
Let us explore this issue with the help of a chart.
Chart
Please click here for the updated chart. The chart shows segmented money flows for FAANG stocks. The chart also shows money flows for popular tech stocks AMD AMD, Alibaba BABA, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA.
Please click here to see the money flows that were previously published. Please note the following by comparing the two charts.
• The momo (momentum) money flows in FAANG stocks have turned negative from extremely positive.
• Smart money flows for the most part have not changed. The smart money is professional investors.
• Smart money flows are stuck in neutral in FAANG stocks.
To learn more about the money flows and rankings shown on the chart, please see, “Here’s the No. 1 tech stock, according to money flows.”
The big change
During most of the bull market, momo money flows have been positive to extremely positive in FAANG stocks. Now for the first time, there are early signs of the momo crowd turning on FAANG stocks.
To be clear, this is not an all out “sell” signal on FAANG stocks for two reasons.
• The smart money is still not selling into the weakness. As The Arora Report has been sharing with its subscribers, the smart money has been lightly selling into the strength…..Read more at MarketWatch.
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