Should big technology stocks known as FAAMG or FAANG be bought now that they’re a few dollars cheaper? Or should they be sold now because they’re expensive and upward momentum is broken? Those are the questions investors are asking me.
From emails that I receive, many investors have strong opinions on both the bullish and the bearish sides. In my view, there is some truth to the adage: “Opinions are a dime a dozen.” So, what do prudent investors do? They look at the hard data that give them an edge. Here are two “edges” that you can use by looking at money flows and breadth relevant to technology stocks.
To learn more about money flows, please see “Here are the five FAAMG stocks ranked by money flows.”
The “smart money” is often right. The momo (momentum) crowd is often wrong.
FAAMG stocks are Facebook FB, Apple AAPL, Amazon AMZN, Microsoft MSFT and Google GOOG, GOOGL. FAANG includes Netflix NFLX, but not Microsoft.
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Nasdaq 100 breadth
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