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5 “FAANG” Tech Stocks That Are Suddenly in Trouble

Thursday's retreat has knocked a tooth out of mega-cap tech. Here's how ugly the potential downside could be.

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Wall Street is under pressure Thursday as traders react to a surprisingly hawkish Federal Reserve policy decision on Wednesday (another rate hike, one more promised before year end, and a looming start to a balance sheet drawdown), as well as the reappearance of “Trump impeachment” headlines (courtesy of the Washington Post).

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As a result, the dramatic selling in tech stocks seen earlier this week and last Friday returned after a feeble rebound rally attempt over the past couple days.

While the broad market has been sliding sideways for months (witness the Russell 2000) as the “Trump-flation” dynamic stalled, all the focus has been on a narrow group of tech stocks carrying the moniker “FANG” or “FAANG” or “FAAMG,” depending on the composition.

Hedge funds and retail investors have all piled into these names, which have been responsible for the parabolic upward move in the Nasdaq Composite, as well as stretched valuations. But now, the froth is coming off, and the bulls are stampeding to be the first to book profits and exit.

Here are five FAANG stocks that could be in trouble thanks to Thursday’s move. Consider them potential targets for at least partial profit taking, as well as quick short plays via options.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/06/5-faang-tech-stocks-suddenly-in-trouble/.

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