The FANG Stocks Confirm A Bear Market
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The darlings of the bull market of the last decade have been the FANG stocks: Facebook, Amazon, Netflix, and Google. This four part chart of these four stocks show that three of the FANG stock peaked in 2018, and the fourth, Google, has peaked this year.
The Facebook, Amazon, and Netflix charts look nearly identical. Each shows a 7 move up Chaos Clamshell, followed by two of a possible 7 moves of a down Chaos Clamshell. Google is the only one of the FANG stocks to make a higher high in 2019. That apparent strength was negated by the gap down on the weekly chart.
This strongly suggests that the US stock market is in a bear market. Typically, since WWII, US bear markets have lasted an average of 14 months. The longest was 61 months. The pattern on the FANG charts suggest this one will probably run into the spring of 2021. Typical bear markets have declined about 33%, with the longest declining over 60%. During these periods, investors should consider moving into cash ( "Cash Is King") or gold.
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