FEATURED CONTENT

Bull or Bear Market… Doesn’t matter

Kyle Dennis’ new, 5 Min Strategy is poised to double Your Money Weekly!

Michael S. made 173% with Dollar Ace. So can you!

 

Why not: FANG stocks during election controversy

Davis MartinDavis Martin ·

The back story: The FANG stocks – Facebook (FB), Amazon.com (AMZN), Netflix (NFLX) and Google (technically, Alphabet Inc., GOOG) – have been crushing it this year. Turn that group into the FAAMG stocks – an acronym coined by Goldman Sachs to add Apple (AAPL) and Microsoft Corp. (MSFT) and drop Netflix – and you have the top five holdings of both the Standard & Poor’s 500 and the Nasdaq 100, which have accounted for more than a quarter of the S&P’s gains this year.

With that kind of performance and momentum, it’s hard to bet against those stocks.

Betting with them right now is equally hard.

See why Davis Martin previously avoided Apple (AAPL) AAPL options

Why I’m not buying them: One big tech name after another of the FANG is being pulled into the ongoing election scandal over Russia interference. It creates a very strange headline risk.

As a result, for anything but a day trade, I don’t want my money in them and I certainly don’t want my members’ money in them for risk-management purposes. On top of that, I think there are better trades to be made within the cyber security, precious metals, and energy sectors anyway.

What will make me buy them again: For anything beyond a day trade, it would be a resolution of the scandal/investigation. I get plenty of exposure to these names because I trade SPY calls and the FANG stocks make up more than 10 percent of the index, but I don’t need to give them any extra weight while they are in the news for the wrong reasons.

#-#-#

Davis Martin is the head trader at Dailyprofitmachine.com. He trades SPY calls and puts and swing trades individual stocks and stock options. At the time this article was published on RagingBull.com, he had no shares, options or open orders in any of the FANG or FAAMG stocks, though they were represented in the S&P 500 and therefore in the options he trades.

You may also like

Exclusive System Tracks Wall St. Insiders

“Dollar Ace Simply Exposes Information That Wall Street Wants To Keep Quiet” Said Kyle Dennis
“One member, Wesley M., has already reported 360%+ gains in just a few short days. Don’t miss this!”
(Reserve Access Now)

“What Recession?!” Jason Bond nets $55,060 in realized profit in One Day

After going 6 for 6 on profitable trades recently, we caught up with Jason to ask how he did it.
Check out Jason’s exclusive interview revealing this tightly guarded strategy. (Watch Now)

RagingBull.com Co-Founder, Jeff Bishop, Launches High Conviction Trade Service

“We listen to our clients and we give them EXACTLY what they want, so we designed a service to deliver 1 trade, 1 time a week, with a 100%+ PROFIT TARGET, directly to your inbox every Monday before the market opens. (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles
START NOW