The two hottest FAANG stocks got pasted on Monday, shortening the odds that the broad stock averages may have seen their highs for the year. AMZN fell $28 after leaping to within $1.34 of a 1843.29 target drum-rolled here earlier; and NFLX, an overrated bag of wind about which Rick’s Picks hasn’t had a good thing to say in more than five years, was down $53, or 12%, to $344 in after-hours trading. Analysts acted surprised by news that the latter company added a million fewer subscribers than had been expected in the second quarter, raising the question of just who was doing the expecting. Egregiously overpaid analysts, no doubt, and one can only wonder why these guys are so prone to surprises. No Rick’s Picks subscribers reported using the AMZN target to get short, so I did not establish a tracking position in the stock. For the record, NFLX puts that could have been bought for as little as 0.60 on Monday would be trading for around 18.00 — a thirtyfold increase — if the options exchanges were open right now. Out-of-the-money puts in AMZN were less rambunctious: With the stock down about 1.5% on news released during market hours, 1750-strike puts expiring on Friday nearly quadrupled in price off a low of 0.88.
Two Hottest FAANG Stocks Get Their Comeuppance
- July 16, 2018, 9:07 pm
The Jurassic Park Era (early 1990’s) of the the long trend upward in the stock markets has ended.
Both these issue NFLX, AMZN are looking at a ‘slingshot’ setup for a direct turning point from their last swing weekly low point. Confirmation is ahead over the days and weeks ahead.
America has move from a moral compass Jurassic Park Era to the extreme of breaking old ‘blues laws’ of morality having billboard signs in city limits for a porn star (Stormy Daniels).
From the Obama Era ‘Beer Summit’ when division became the factor between the public and security sector of the United States the ‘Soft Civil War’ began. It has grown and now part of everyday life seen in this billboard add.
A Soft Civil War is in place, and an end to era has taken place.
America has become a village once again.
https://en.wikipedia.org/wiki/The_Village_(2004_film)
Severe stock market break dead ahead. The 05/15/2018 turning point is an important area in time and price.
Have a great day Rick.