Swing Trader: Sector Rotation Strategy (TA&FA) for FANG - 28.13% Returns
Swing Trader: Sector Rotation Strategy (TA&FA) Generates for FANG 28.13%
Sector rotation is a popular investment strategy that involves shifting investments between different sectors of the economy based on their performance and outlook. One particular sector that has attracted significant attention in recent years is the FANG group, comprising Facebook, Amazon, Netflix, and Google (now Alphabet). These tech giants have been known for their rapid growth and dominance in their respective industries.
Using a combination of technical analysis (TA) and fundamental analysis (FA), swing traders have been able to generate impressive returns by capitalizing on the sector rotation strategy applied to the FANG stocks. In fact, recent data suggests that this strategy has yielded a remarkable 28.13% return for investors.
Following a notable 2.96% three-day advance in the FANG stocks, market analysts estimate that the price is likely to continue its upward trajectory. By examining historical data from similar situations where FANG stocks experienced a three-day advance, it has been observed that in 244 out of 328 cases, the price continued to rise further within the following month. This statistical analysis suggests that the odds of a continued upward trend are approximately 74%.
The significance of this analysis lies in the fact that it provides swing traders with valuable insights into the potential future performance of the FANG stocks. By understanding the historical patterns and probabilities associated with these stocks, traders can make more informed decisions and position themselves to take advantage of favorable market conditions.
However, it is important to note that past performance is not indicative of future results, and the stock market is inherently unpredictable. While historical data can provide useful information, it should not be the sole basis for investment decisions. Swing traders and investors should consider other factors such as market trends, company news, and overall economic conditions before making any trading decisions.
The sector rotation strategy, combining technical and fundamental analysis, has proven to be successful for swing traders in the FANG stocks. With a 28.13% return generated and a 74% probability of continued upward movement, this strategy has caught the attention of many investors seeking to capitalize on the growth potential of these technology giants. However, prudent investors should always exercise caution, conduct thorough research, and diversify their portfolios to mitigate risks associated with individual stocks and sector-specific fluctuations.
FANG in +0.84% Uptrend, rising for three consecutive days on October 18, 2024
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where FANG advanced for three days, in of 354 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Aroon Indicator entered an Uptrend today. In of 332 cases where FANG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for FANG moved out of overbought territory on October 08, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on FANG as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for FANG turned negative on October 17, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
FANG moved below its 50-day moving average on October 15, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FANG crossed bearishly below the 50-day moving average on October 24, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The 50-day moving average for FANG moved below the 200-day moving average on October 24, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FANG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
FANG broke above its upper Bollinger Band on October 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.139) is normal, around the industry mean (5.175). P/E Ratio (11.502) is within average values for comparable stocks, (19.495). Projected Growth (PEG Ratio) (1.684) is also within normal values, averaging (5.525). Dividend Yield (0.041) settles around the average of (0.085) among similar stocks. P/S Ratio (4.305) is also within normal values, averaging (153.585).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FANG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a company which develops, explores & exploits unconventional, onshore oil and natural gas reserves
Industry OilGasProduction