FAANG is Back

Just in time for Halloween, FAANG stocks soared on Friday as AMZN rallied 13% after reporting earnings. Amazon opened above the .786 retrace and never looked back, making new all-time highs. AAPL and FB will report this week. FB, GOOGL, TWTR will appear on Capitol Hill to testify on their platforms use by Russian to influence the 2016 election. Click here to sign up for a two week trial of Keystone Charts Daily Game Plan.

FAANG stocks had been weighing on overall market sentiment going into earnings season after touching the year highs on October 17th.

Amazon versus Walmart; the ultimate retail match-up as retail undergoes a paradigm shift trying to find a balance between market share and profitability. WMT and GOOGL are partnering on a number of strategies to help it compete with AMZN. Beginning in September Walmart products will be available using the Google Assistant.

Amazon had been under-performing relative to Walmart since July, but AMZN/WMT held pivotal (.786 retracement) support last week ahead of AMZN earnings. As you can see from the chart above, the technical key held nicely. FAANG had been under-performing relative to the SP 500 since the end of July, but found support after filling the gap on September 25th (see below). FAANG is now up 41% y-t-d compared to SPY 15%

DON'T MESS WITH FAANG!

AAPL reports this week and looks likely that it will outperform the SP 500 after holding its 200dma last week in AAPL vs SPY. It has not been below the 200 day in the pair this year.

Trading in futures saw tech heavy Nasdaq outpace ES after it held above a pivotal Fibonacci retracement support and the 200dma in the pair. Nasdaq seems likely to out-perform DAX even though the weaker euro is helping boost European indices (see bottom chart).