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

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GBP/USD hits three-day peaks, targets 1.3700

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Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

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