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Actionable news in NFLX: Netflix, Inc.,

Are the FANG Stocks Fading? Here's How to Trade Them Now

The rally off the June lows in the fabled FANG stocks, as TheStreet's Jim Cramer dubbed them, has been impressive but has underperformed the broader market advance in the same period. That is not impressive relative performance for what had previously been leaders and outperformers, and if it continues, it could be a drag on the broader market.

Since early June, Facebook ( FB) has underperformed the S&P 500 by 4.5%, Netflix ( NFLX) by 6%, and Alphabet ( GOOGL) by 4.6%. Even Amazon ( AMZN) has underperformed the index by 0.75%.

Let's take a closer look at how to trade these four stocks.

Facebook shares have been making lower highs since May, and they have been marked by negative candlestick patterns. Most recently, the June high and the high this month have seen the formation of dark bearish engulfing patterns, the latter at the 50-day moving average and just above horizontal resistance-turned-support. The stochastic indicator is making a bearish crossover in an overbought condition, and moving average convergence/divergence is tracking lower. These negative price momentum indications are accompanied by Chaikin money flow crossing into negative territory.

The integrity of the $116 level is key to the direction of the stock price over the short term.

Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio. In their weekly roundup on Friday, Cramer and Research Director Jack Mohr addressed "comments from Andrew Left of Citron Research, the short-selling firm, on his belief that FB had reached too high of a...


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