The booking of FANG profits is very apparent in the last five trading days as the Nasdaq has lost 1.7% in value.
The rotation out of high-flying tech stocks, which I saw happening as the Trump tax cut moved through Congress last week, is continuing while the Dow Jones continues to move higher.As an example, Microsoft has come off its 52-week high last week to fall 4.5% through Monday’s trading. And the sell off looks to continue as Nasdaq futures are down Tuesday morning.
Microsoft is also looking at a lower opening off 0.7% before Tuesday’s opening.
Other tech giants are moving lower over the last five days.
- Apple: -2.6%
- Google: -5.8%
- Facebook: -6.6%
- Netflix: -5.8%
- Amazon: -4.4%
Now where are some of these profits being deployed?
- Bitcoin: +16%
- Dow Jones: +2.7%
- Banking stocks: +2.6%
- Volatility: +15.7%
So the FANG stocks — generally seen as new tech — are being outperformed by the cutting-edge tech of cryptocurrencies.
While the price progression of bitcoin has slowed since moving $2,000 in three days, the move up in bitcoin is very impressive when compared to larger equity investments.
Over the last three months bitcoin has soared more than 60%, as the Dow industrials are up an impressive 10.5% over the same time frame.