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Bad news is building for this once-hot tech sector

Posted On September 20, 2018 2:15 pm
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With cryptocurrencies and cannibas providing the big buzz in the markets this year, what’s happening with the big tech companies may have been missed by some investors.

Enter our call of the day from Tony Greer, founder of TG Macro, who has a bearish message for the Twitter TWTR, +0.95%  and Facebook FB, +1.93%   faithful, and a sector that has definitely had its ebbs and flows.

“It’s finally time to be short social media,” declares Greer, in an interview that published Wednesday on Real Vision.

He uses the Global X Social Media ETF SOCL, +0.99%  as a proxy — it’s dominated by Twitter, Facebook FB, +1.93%  , Tencent 0700, +0.81% , IAC/InterActiveIAC, +0.58%  and Alphabet’s Google GOOGL, +1.04% — for his bearish position. That ETF is down about 3% year-to-date, well underperforming the Nasdaq and S&P 500.

Greer says social media’s problems start with a “massive topping pattern” on the SOCL chart triggered by volatility in Facebook shares earlier this year – the result of negativity surrounding the Cambridge Analytica scandal, subsequent upbeat earnings, then news that the platform was…

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