Bitcoin taking a bite out of FANGs

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.

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