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How the Nasdaq Is Setting New Highs Without Help From FAANG Earnings

by | Oct 29, 2021 | Market Outlook

For the past few years, the tech-heavy Nasdaq has lived and died with the FAANG stocks…

And Thursday’s earnings reports for Amazon.com Inc. (Nasdaq: AMZN) and Apple Inc. (Nasdaq: AAPL) weren’t good…

In Thursday’s Blitz Daily, we wondered if Apple had already made its move… Looks like we have our answer.

Shares for the tech trendsetter opened Friday $5 lower from its previous close, but bulls bought the FAANG stock’s dip, closing the gap within the projected move around $3.65 per share by lunchtime.

Likewise, traders are buying the FAANG stock dip with Amazon, pulling shares back to their pre-earnings run-up levels from mid-October.

But in spite of getting almost no help from the FAANG stocks, the Nasdaq printed record highs Friday.

So let’s take a minute to look around these bizarro markets and see just how we got here, and what that means as we head into November.

Bulls Rush in to Buy the FAANG Stock Dip

It might seem strange at first glance, but there are some easy explanations for what’s happening with the Nasdaq…

First, while Google parent company Alphabet Inc. (Nasdaq: GOOGL) was the only one of the FAANG’s five stocks to kill it straight out of the gate, the other four have turned out to be slow burns.

This past week, we talked about the funky price action we saw with Netflix Inc. (Nasdaq: NFLX) and Tesla Inc. (Nasdaq: TSLA) earnings — which bounced right before announcing a monster contract agreement with Hertz. Both tickers took a beat before going straight up…

Then Facebook Inc. (Nasdaq: FB) dropped its own bombshell on Thursday, announcing the social media site will rebrand its platform as “Meta” in an effort to distance itself from its recent string of bad press. The market responded positively to the news and the stock jumped more than 2.5% Friday as traders bought that FAANG stock dip…

But it’s not just the bulls who are out in force buying the FAANG stock dip. The big tech firms outside of those five names have also been killing it.

Bill Gates may not be the richest man on the planet these days, but Microsoft Corp. (Nasdaq: MSFT) crushed earnings and is in the middle of a 6.5% run higher. And while Facebook didn’t carry the broader market, it did send Nvidia Corp. (Nasdaq: NVDA) on a 10% run on news the chipmaker willb provide hardware to FB’s artificial intelligence program.

The run on NVDA even helped pull Intel Inc. (Nasdaq: INTC) out of its freefall, pushing our 3D Profit Surge Alerts strategy to a 53% win!

The fact that the bulls are out buying the FAANG stock dip while other big tech firms are holding their own is a bullish sign as we hit the end of October.

The end of the month is when money managers have to do their books, take profits and cut the losers so they can be cashed up and ready to hit November running.

Only time will tell how it plays out, but we’ll see if the tech trend can stick. There are a few more names seeing bullish flow on the Blitz Tracker ahead of earnings, including Uber Inc. (NYSE: UBER) which reports Wednesday.

P.S. Aggressive “desk clearing” FDA approvals are fueling some of the easiest profits of 2021… And the next 61 days could be even bigger.

Researchers from Harvard and MIT noted in a recent report that “Approval spikes occur at the end of each calendar month,” and before the “end of the year in a kind of ‘desk-clearing’ activity.”

So dozens of stocks are set to pop in the next 61 days as the FDA clears its backlog of drug approvals. 

Click the link below to find out more!

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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