The revenge of the FANGs

[backtothebeach]

I noticed that AMZN and GOOG had a great week up 10+%, and META and NFLX are not far behind. Hmm. Just a  short term sector rotation or a sign of a shift, (large) investors looking past the current banking problems and a possible recession?

[WayWardCloud]

I think the market's logic is as follow :

Regional banks stress will force the Fed to stop or even reverse rate hikes. Lower rates make growth assets more valuable.

Edited March 18, 2023 by WayWardCloud

[SHDL]

There was apparently a large number of bearish option bets against these tech names going into Friday's opex and dealers were closing the short positions that they had as hedges as those options expired. Check out jam_croissant on Twitter if that sounds interesting. 

[backtothebeach]

On 3/18/2023 at 2:39 PM, SHDL said:

There was apparently a large number of bearish option bets against these tech names going into Friday's opex and dealers were closing the short positions that they had as hedges as those options expired. Check out jam_croissant on Twitter if that sounds interesting. 

Makes sense, thanks!