FAAMG - The real reason why Tech Stocks chose their moment to collapse

Peter Goodburn WaveTrack International GmbH

FAAMG - TECH SNAPSHOT!

Since the Nasdaq 100 staged a reversal-signature exactly 1-week ago (Friday 9^th June) from an all-time-high of 5907.50 (futures), pundits have attempted to explain why technology stocks collapsed.

Analysts were quick to issue their forecast revisions for some of the FAAMG’s, Facebook, Amazon, Apple, Microsoft and Alphabet (Google) – investment bank Mizuho lowered their targets for Apple Inc. from $160.00 to $150.00 retrospectively, Monday morning even though they commented that the timing of this release was a coincidence as the research took weeks to compile – the stock has since traded down to $142.21!

But there was a definitive lacking in fundamental logic – yes, commentators cited a frothy over-extended market but they’ve been saying that for weeks – that’s not a concrete explanation for the timing.

Here’s our explanation – Elliott Wave analysis identified 3^rd wave completions into these highs. Apple Inc. hinted it was preparing for this decline over 2-weeks before it happened (see chart, left). It’s peak at 156.65+/- was already cited as ending its 3^rd wave that began from last November’s low of 104.08 had completed late-May, opening the way for a corrective decline in a 4^th wave towards $134.00+/-.

Apple Inc. - Weekly vs. Google Inc (C) - Daily

Likewise, Google Inc. was also heading into a major peak – Elliott Wave analysis forecast an approach to important 3^rd wave highs towards $997.12+/-, the actual high trading marginally short at $988.25 (see chart, right). Its 4^th wave downside targets to $918.00+/- has already been realised to 915.23 – in fact, we shall be revising the completion even lower now.

Elliott Wave analysis combined with Fibonacci-Price-Ratios become an effective tool in forecasting, projecting these types of up-coming reversal-signatures.

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Author

Peter Goodburn

WaveTrack International GmbH

WTI HISTORY

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold pushes back above $5,000

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month.

Litecoin eyes $50 as heavy losses weigh on investors

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Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

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