Here’s one FANG stock that is where you want to be. (February 24, 2022)
AAPL GOOGL FB AMZN
A lot of action took place this morning, obviously, these stocks have been running all day. I just want to go over this. This could be a woulda, coulda, shoulda. If I woulda bought in the morning, and I coulda bought in the morning, but I didn’t buy in the morning, I would have a pretty good move right now. But that is not what I am talking about. I am actually just wanting to look at things through a wider lens, I should say.
If you look at Apple ( NASDAQ: AAPL ) for example; if you really look at things, what does Putin, Ukraine, NATO, etcetera, etcetera? What does that have to do with Apple ( NASDAQ: AAPL )? Unless they are farting around in the slave camps in China it really doesn’t impact anything (sorry if I triggered you), it really doesn’t mean anything.
I think a lot of this liquidation of names like this has been kind of, we have got to raise some cash. It might be just a lot of panic selling by uninformed traders. But I think a big push down like this is going to be a push that is caused by larger funds liquidating some stock. Here’s what you need to understand about this, you are not going to get a stock like Apple ( NASDAQ: AAPL ) and take it for a 10 or 20 percent haircut. It just won’t happen and I will tell you why, because of the institutional sponsorship, this institutional ownership is really, really high.
The only time you are going to get a massive amount of institutions selling all of this stock is when the bombs are flying overhead rather than on your TV when there is a mushroom cloud over there. World event kinds of stuff that really does mean anything. A comet flitting by the moon on the way to Montana, that’s the kind of stuff that would cause a mass exodus from stocks period, including these.
On these Big Cap stocks, you just will not see these violent massive bear market moves. You will see this kind of zig-zag, obviously. And you could say, well what happened over there, Dan? Well, I am not talking about over there, I am talking about here. You have got to be looking at these pullbacks in stocks like this as buying opportunities if you are interested in buying these stocks. And that is really what it gets down to. You might not want to own Apple ( NASDAQ: AAPL ), fine, whatever, I couldn’t care less.
But if you are looking to buy stocks like this, this is the type of move you get when the stock pulls back to the 200-day moving average and rebounds. It is hardly ever at the 200-day moving average, hardly ever. Back here it was, a couple of times here it kind of farted around with it and kind of tagged it. And now, from where it was here, now it has tagged it at 18 percent higher. And so if you are just buying these stocks at the 200-day moving average you are going to do fine.
On the other hand, Google ( NASDAQ: GOOGL ), didn’t work out too well. This is a different pattern than Apple ( NASDAQ: AAPL ) but I would say the same thing. You are not going to see this massive exodus from funds, they all own Google ( NASDAQ: GOOGL ). You might see the stock rollover, as we are seeing here, and start to kind of lead the market down.
But what I am saying is, when you see a stock like this go down don’t decide you are going to short the stock, that’s not going to work for you. Don’t decide you are just going to load the boat just because it’s a once-in-a-lifetime buying opportunity. It’s not, but you can trade this in this type of a box.
Now, the one exception would be “Faceplant” ( NASDAQ: FB ) here. You will see, though, even this piece of crap is up 4 percent on the day but it had gapped down quite a bit. So from the bottom to where it is right now, this is about an 8 or a 9 percent move, that’s a big deal but it doesn’t negate the selling here. And the reason that funds have been selling this thing off with reckless abandon and extreme prejudice has nothing to do with Ukraine.
Anytime a company says they are going to change their name, it’s kind of a red flag, I’m just telling you. Institutions see this. They don’t all have their oculus on, they are just looking at putting their money where it’s likely to grow as opposed to where it is likely to stagnate or trade lower. This, I would say, is a huge exception to the rule that I have just been saying, that you are not going to be seeing these big mega-cap massively owned stocks take a big dump and not return.
And so you look at an environment like this and you look to buy the Googles ( NASDAQ: GOOGL ). You look to buy the Apples ( NASDAQ: AAPL ). I haven’t even looked at Amazon ( NASDAQ: AMZN ) today, I probably should have. Well, it doesn’t surprise me, it gapped down and then moved its way higher.
Think about what I have just been saying about buying all of these on these big massive pullbacks, right? Of everything that I have mentioned Apple ( NASDAQ: AAPL ) would be the one that makes more sense to me. And I will tell you why, because it is still in an uptrend. These others are sucking the tailpipe here. This is in an uptrend and bounced at the 200-day moving average so this is a good opportunity. The others, I think they are just kind of more quick trades, in today, out by the end of the day tomorrow, something like that.
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