Today, I want to go over some thoughts on what’s happening in big tech — particularly the venerable FAANG stocks — as we hit new record highs in the stock market.
There are a couple names playing catch-up among growth stocks that have pulled back while the market surges ahead.
One name in particular I’m looking at is Apple Inc. (Nasdaq: AAPL).
Yes, the stock bounced a bit over the past few weeks, but it’s not printing all-time highs like we’re seeing in the Invesco QQQ Trust Series 1 (Nasdaq: QQQ), which tracks the Nasdaq 100.
To be blunt, Apple is stuck in the mud… which makes it ripe for a FAANG stocks earnings play.
The way I see it, there are two likely scenarios when we head into the end of July to its earnings date…
The first FAANG stocks earnings play scenario involves the market’s continuing the uptrend into July.
If you start having the FAANG stocks… Facebook Inc. (Nasdaq: FB), Amazon.com Inc. (Nasdaq: AMZN) — which is already making a move to the upside — Google parent Alphabet Inc. (Nasdaq: GOOGL), Netflix Inc. (Nasdaq: NFLX) and Apple… all rolling toward the end of July printing all-time highs while the market sustains the rally…
When earnings season starts, those names are going to sell off.
It won’t matter what their earnings numbers are, the market is going to use that as a profit-taking opportunity. Market makers will jack up the price of the options and the stocks will dwindle lower.
That doesn’t mean we’ll see massive gap downs… even if a 10% to 20% decline would be healthy.
In the second FAANG stocks earnings play situation, let’s say the market kind of just goes flat… What would that look like?
Check out the quick video below and let’s talk about FAANG stocks earnings plays. Leave a comment and tell me what you want me to look at next, especially with this crazy market and I’ll look at the comments.
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