The stock market is in correction territory and it will be a difficult task to get it out of there.
But if any stocks can help accomplish this move higher, it is the four momentum stocks TheStreet's Jim Cramer refers to as FANG.
When you look at the late-2005 to early-2016 performance of FANG, Netflix (NFLX) peaked first with an all-time high of $133.27 set on Dec. 7. Then Amazon (AMZN) set its all-time high of $696.44 on Dec. 29.
Facebook (FB) plunged 14.6% as 2016 began to a low of $89.37 on Jan. 20. A positive reaction to earnings on Jan. 27 fueled a pop of 31.6% from the Jan. 20 low to the all-time high of $117.59 on Feb. 2.
Alphabet (GOOGL) , the former Google, had a similar volatility plunge and pop to that of Facebook. The stock plunged 11.6% as 2016 began to a low of $687.78 on Jan. 20. A positive reaction to earnings on Feb. 1, fueled a pop of 17.8% from the Jan. 20 low to the all-time high of $810.35 set on Feb. 2. Talk about a volatile ride, the stock then plunged again, this time by 15.8% to a low of $682.01 on Feb. 8.
Alphabet and Facebook are holdings in Cramer's charitable trust, Action Alerts PLUS. According to Cramer and Jack Mohr, AAP's research director, "The fundamentals for both Alphabet and Facebook, validated by recent results/guidance and driven by powerful and visible long-term growth trajectories, leave us with little doubt that the underperformance since their respective earnings results has been illogical" although shares of FB have recovered in recent weeks.
The FANG group as a whole rose 75% last year versus a 1% total return for the S&P 500. The same investors who piled into these names due to their industry leadership and distinct competitive advantages, making money hand over fist, "have sold out of their positions expeditiously as they actively look to take profits on the still-massive gains they had generated on the respective stocks," said Cramer and Mohr.
"We have refused to trade around these names as we view both Alphabet and Facebook as long-term core holdings, not event- or technical-driven trading vehicles," they concluded.
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Here's today's FANG scorecard.
During times of extreme downside volatility such as January and February, it's harder to make investment and trading decisions. This makes the daily and weekly charts, and key levels extremely important for those wanting to capture the volatility rather than fear it. It takes a special discipline to buy on weakness and to sell on strength, when the overall market has been in a sell strength mode since the end of June.