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F.A.N.G. Bites (N)

It's almost comical how bullish the sentiment still is on days like today where the market is not slip n' sliding to fresh session lows. This especially holds true for the F.A.N.G. stocks where fan boys (and girls) spend excessive amounts of time telling you where the future of the stocks they love will be. For those of you that don't know, F.A.N.G. is a nifty little acronym that Wall St. gave to its four leaders Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Google (GOOG/GOOGL). It rolls right off the tongue and makes it easier to fall in love with the stocks. 

Cool name or not, these stocks are not performing since they topped out as of late. I want to take a look at them individually using multiple time frames starting with Netflix (NFLX). 

Netflix has been the true leader of the group and the market, so I want to start here. Let's first take a look at NFLX's chart for the last two years on a monthly basis. As you'll see, we have a rally for about a year followed by a base for almost a year and finally a resolution to the upside. Once the issue resolved to the upside, the move was quite violent breaking far away from trend. So long as the trend was in tact, the issue continued to climb. 

In mid July however, the issue struggled to make new highs and topped off around the 130 level. The monthly, weekly, and daily charts all signal this top off and a precipitous decline ensued. This decline was accelerated when the trend NFLX built since the start of the year was breached. 

Currently you'll notice that the highs are getting lower and NFLX appears to be descending in a downward channel. Areas of support are noted with the blue horizontal lines. 

NFLX Bullish rally on monthly followed by a reversal. Echoed in the weekly and daily charts. New downtrend illustrated in daily chart.