In response to the United States' FAANG stocks, Australia has its own group of tech stocks, collectively referred to as "WAAAX".
This group, made up of WiseTech Global Ltd (ASX: WTC), Appen Ltd (ASX: APX), Afterpay Touch Group Ltd (ASX: APT), Altium Ltd (ASX: ALU) and Xero Ltd (ASX: XRO), has had a mixed bag of performances in September.
While the Appen share price has plummeted 15% so far this month, it hasn't been the only one in the group to fall lower in the last month or so.
Apart from Afterpay, all the remaining WAAAX stocks have fallen lower throughout September with the WiseTech (-5.14%) and Altium (-6.80%) share prices seeing similar declines.
The Xero share price fell 0.27% this month but largely held its gains from throughout the year, while the Afterpay share price was the standout performer with a more than 17% gain at the time of writing.
A strong full-year earnings result gave the Afterpay share price momentum leading into the month, while a positive update on its AUSTRAC update has pushed it higher still.
How will the WAAAX shares fare in October?
While it is difficult to forecast the share price movements even 30 days out, the signs aren't all bad for the WAAAX shares in October.
A likely Reserve Bank of Australia (RBA) interest rate cut could boost the ASX higher and drag the WAAAX stocks with them.
I'd expect the WAAAX share prices to be sensitive to any announcements regarding the US–China trade war, given what we've seen so far, while a looming no-deal Brexit deadline at the end of the month is also one to watch.
Given a relatively positive earnings season in August, I think it could be a good chance to buy the dip, particularly for Appen shares, and pick up a bargain where possible on the ASX.
