Captain_Walker

DANGER: Amazon and FANGS could be in trouble.

Education
NASDAQ:AMZN   Amazon.com, Inc
Amazon has just crossed $1 Trillion in market value.

This is without doubt a parabolic expansion. History has shown us that parabolic charts like this suffer a significant correction. Do not expect me to say when - as I have no crystal ball.

Tech stocks have been propping up Wall Streets expansion. But there is a problem. The stock markets in the US and around the world are being eroded in value. Google is your friend. Around the globe there is market contraction due to trade wars and international political tensions.

Reliable research shows that value of stocks below the top 30 is falling in average. This is a danger signal.

The traditional 'news' is not your friend. From day to day we hear different news casts. These people are there to sell their news - that's all. Dig deeper. The world is in trouble!

Amazon cannot fight and win over the whole world. It just ain't that big or powerful.

Tech stocks have been living on borrowed time and feeding frenzies. If Amazon goes south, and the rest of tech goes south, expect to see major corrections on Wall Street.

Those looking to short the stock markets may wish to look for trend changes on the 4H - 6H time frames and with Amazon.
Comment: As mentioned the lower time frames were the ones to short FANGS. Now it'll be seen as too risky - which is right.
Comment: Well whaddayah know.. FAANGs (FB, Apple, Amazon, Neflix and Google) are in trouble 2 months later. Did I predict anything? I did not! I simply saw the probability based on the technicals, along with geopolitical and macroeconomic turmoil.


But in the last week something newer is happening. The index of top 100 technology shares has been decoupling from Wall Street and the S&P500. What this means is that movement of the FAANGs is having less influence on the those two. And that suggests that Wall Street and the S&P500 is being 'moth eaten'.

FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus https://youtu.be/NjTdvALChwk ]
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