There was a lot of red across the market today. The S&P 500 was down -0.81% which is bad, but the Nasdaq (Tech) really took the full beat down shedding -1.61%, double the S&P losses. Facebook, Apple, Netflix and Google (collectively known as FANG) had an exceptionally rough day:
- Facebook (FB): -1.96%
- Apple (AAPL): -1.43%
- Netflix (NFLX): -4.11%
- Google (GOOG): -2.62%
I also have to mention Google was hit with a $2.7 billion fine by the European Union over their competitive practices. It looks like the EU is looking to constrain Google’s European business model which may decrease Google’s income. Also, Amazon took it on the chin today too dropping -1.73% and Tesla got kick in the nuts with a -4.01% decline. I could go on and on, but it wasn’t all bad news though. Facebook announced it hit a major milestone of 2 billion monthly users.
Looking more broadly at QQQ (Nasdaq 100 ETF), today was the first time in over 6 months it has fallen below its 50 day simple moving average. This definitely a signal reflecting trending weakness. As I shared in yesterday’s post these Tech stocks weigh heavily in my retirement portfolio. Today’s declines aren’t going to reflect positively in my account. That said, I currently have no intention of dropping any of my Tech positions. Things have been hot for so long in this sector it is of no surprise to see a pullback.
As far as the future and where we go from here your guess is as good as mine. I have no idea if Tech will continue this weakness for the rest of the week, month or year. Falling below the 50 day moving average is concerning though, but I’m sticking to long term trends and for that the 200 day moving average is more important. All I can do is watch the trends and react accordingly. Overall I’m up massively in my Tech positions so a little weakness shouldn’t be too painful. However, as I shared earlier my goal is still to find a few strong investment plays outside of the world of Tech.