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While stocks have rallied since the presidential election, Apple and the so-called FANG stocks — Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google parent Alphabet (GOOGL) — have largely sat out the Trump rally. Several of these tech titans are on the upswing this week, but with one notable exception their charts remain challenged.
Apple and FANG postelection woes reflected, in part, a big rotation into sectors such as banks and infrastructure-related companies that might do well under a Trump administration. But several of the megacap techs — including Apple, Amazon and Facebook — had reported disappointing results or guidance heading into Election Day.
The Nasdaq composite did retake its 50-day moving average late last week and came within 1 point of its all-time high. The Nasdaq 100, home to the index's biggest stocks, finally retook its 50-day line on Wednesday.
IBD'S TAKE: Apple and most of the FANG stocks are showing weak relative strength vs. the broader market. True market leaders show rising RS lines. To find stocks with RS lines hitting new highs, take a free Marketsmith trial.
Apple shares rose 1.2% in afternoon trade to 112.40 in stock market trading Thursday after rising 1% to 111.03 on Wednesday. The stock is consolidating in a flat base with a 118.79 buy point. But while Apple found support at its 200-day moving average on Nov. 14, the stock remains pinned below its 50-day line. Also, Apple's relative strength line, which compares the stock's performance against that of the S&P 500, has been trending down and is near its Nov. 14 lows. That RS line (the blue line on the stock chart below) shows how Apple continues to be a market laggard.
Facebook is the biggest laggard of these tech stocks, struggling ever since warning of "meaningfully" slower ad revenue growth after reporting stellar Q3 results. Facebook rose 1% Thursday, but is still stuck below its 200-day moving average, with the 50-day line a challenge for later. Facebook's RS line is near its lowest levels in seven months.
Amazon looks relatively better than Apple and Facebook, but not vs. the general market. Shares have risen 4% so far this week, including a 5.70 gain to 770.42 on Wednesday. Amazon dipped Thursday afternoon. But the RS line hasn't made much of a recovery, and the stock is still below its 50-day line. Amazon is working on a flat base with a potential 847.31 buy point, but it has work to do.
Netflix was the only one of these big techs that above its 50-day line as of Wednesday though even the Internet TV leader is not a market leader right now. It helps that Netflix was the only one of these five stocks that had clear-cut strong earnings and guidance, with the stock blasting out 19% on Oct. 18, with further gains for several sessions. After pulling back in the first half of November, Netflix began moving higher, finding support just above its 50-day line.
Netflix is in a yearlong cup-with-handle base, with a buy point of 129.39. Netflix shares fell 1.7% to 123.31 Thursday afternoon. Shares had risen 3.8% through Wednesday, closing at 125.38.
Netflix is on Leaderboard, IBD's premium stock charting service of top-rated stocks.
Alphabet stock 0.7% to 797.20 Thursday afternoon, just above its 50-day moving average. Google's parent found support at its 200-day line at the end of last week.
Alphabet appeared to deliver solid Q3 results on Oct. 27, with shares just hitting an all-time intraday high on the following day. But they quickly reversed and traded lower through Nov. 14.
But Alphabet, despite Wednesday's above-market gain, hasn't made much ground vs. the broader market. Its RS line remains near its recent lows.
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