How Fab Five Turned To “Best Stocks To Short”

Just a few weeks ago Netflix (NFLX), Facebook (FB), Tesla (TSLA), Google (GOOG) and Priceline (PCLN) were unstoppable. Today, they are crashing to the tune of 3-5% per day. 

What gives? 

The above issues are acting exactly as they should under today’s market environment and as per our mathematical work. Well, at least according to our timing work. When the bear market of 2014-2017 really kicks into gear you will see the stocks above lose at least 50% of their value. For instance, Facebook has a gaping hole at $26. When it is all said and done, Facebook must go there to close the gap. While this sort of analysis is too simplistic, it is nevertheless confirms our mathematical and timing work.

In fact, when the bear market of 2014-2017 completes itself you will see most of today’s highly speculative issues cut in half. Not only the Fab 5 above. If you would like to find out exactly when the bear market will start (to the day) and it’s internal structure, please Click Here.   

fab 5 stocks

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How Fab Five Turned To “Best Stocks To Short” Google

Trending Tickers: Netflix leads the Fab Five lower

Today’s Trending Tickers as measured by your Yahoo Finance searches are: 

Netflix (NFLX): The video streaming service is getting hit hard today. Why? A Wall Street Journal report of a potential deal between Apple and Comcast has investors getting nervous. Right now Netflix users are paying $8 a month on top of their cable bills, and a potential deal that could put Apple TV in your set top box would be a natural threat to Netflix business.

But it isn’t just Netflix getting lit up, the Fab 5 as they’re called are getting boot stomped.

Facebook (FB) is fading 4% in midday trading. A favorite momentum name, Tesla (TSLA), giving up 5% today after a rough week. Priceline (PCLN) getting price chopped to the tune of 4%. Even a behemoth likeGoogle (GOOG) isn’t immune, dropping 2%, and the selling is deepening.

What’s going on here?

There’s a principle called Occam’s Razor that philosophers, scientists and other fancy-thinkers use to solve complex problems. Occam’s Razor is simply a fancy way of saying the least complicated explanation of an event or phenomenon usually proves to be correct. I can tick through individual reasons for all of the above stock drops but that would ignore the more obvious fact that last year’s momentum stocks have been getting crushed for a week. Netflix, Facebook, Priceline and Google collectively are down an average of 6% in the last 5 days. The S&P 500 (^GSPC) is roughly flat during the same period.

Investors are running away from high-flying tech momentum names. Risk aversion is in vogue. Try not to over think these things.

Monday just hasn’t been kind to the “Fab 5.” Those are your trending tickers, We’ll see you back here tomorrow.