Getting Un-Zuck

The large cap, glamorous "FANG" stocks in tech (Alphabet, Amazon, Facebook, Netflix) have been "stuck" in the mud of this market for months, regardless of how well Alphabet's chart has held up and been acting (in fact, GOOGL is my horse in this race and has been for a while). 

Even with GOOGL exuding impressive relative strength to, say, NFLX, the reality is that we know most stocks have been floundering with the exception of Apple, at various times, attempting to singlehandedly piggyback the market higher. 

Going forward, we know we must contend with a new earnings season. Without question, the reaction to earnings by AMZN FB GOOGL NFLX could have just as much, if not more, sway to the broad market than the China trade war headlines and anything associated with The Fed. 

But in the here and now, with the market pushing higher this morning off a mixed Columbus Day session yesterday, it seems as though Friday's rally was legitimate and not such an easy fade despite the fact we closed last week out well off the post-China-deal-news highs. And Facebook is one of those names you just know if capable of frustrating the daylights out of shorts if we do get that year-end rally across the board.

On the FB weekly chart, below, note the multi-month bull flag attempting to break higher. In other words, as choppy and weak as the action looked at various points since May in names like FB, all of the frustration may very well have added up to another bullish consolidation resolving higher. With earnings on October 30th, Facebook has a good chance beforehand to make headway alongside GOOGL as the two best FANGs while AMZN and NFLX still try to find their footing.