All of a sudden FANG has its groove back

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All of a sudden FANG has its groove on.

Remember FANG … the high-tech quartet of Facebook (FB), (AMZN), Netflix (NFLX) and Alphabet (GOOGL)? They’re even tracked by the NYSE FANG+ Index ($NYFANG). It’s been hitting new highs in June after two months of going nowhere.

NFLX led the charge after breaking out of a bullish triangle on May 24, and pulled the others up in recent weeks. AMZN was the second to hit a new high, followed by FB late last week and GOOGL today.

There haven’t been a lot of strong news catalysts like earnings. (Of the four, only GOOGL reported a weak quarter last time around.) Instead, there seems to be a simple continuation of money flowing into established leaders giving investors exposures to the biggest and most exciting growth areas in the market.

Bottom line: We’re entering the homestretch into the Fourth of July. There aren’t a lot of earnings reports or economic data, and volumes are slowing as the World Cup progresses. We’re looking at a quiet drift higher as tech traders stick with long-term favorites.

NYFANG Index, with crosses showing new highs for the year.
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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.