- The NASDAQ 100 was somewhat positive during the month of August, but it was very volatile.
- This is not a huge surprise, due to the fact that there are a lot of questions out there about where the economy is going at the moment, and of course traders are starting to try to price in the idea of whether or not the FOMC is going to announce an interest rate cut in September.
- As things stand currently, it appears that they are, and therefore it should, in theory at least, help stocks. Especially high flying technology stocks that make up the bulk of the NASDAQ 100.
That being said, there are a lot of questions out there as to the overall health of the economy, and therefore the NASDAQ 100 is a market that I believe will be difficult to deal with in the short term. The market breaking above the 24,000 level could open up a big “FOMO trading” where we start to melt to the upside, but I also recognize that things are going to be very noisy this month.
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Is the Economy Stable?
The biggest question of course is whether or not the economy is stable, and it is worth noting that there are some signs that the US economy is starting to struggle a bit. Ultimately, is this a market that is going to have a lot to think about during the trading month, but all things being equal, we are in a massive uptrend and so far, it looks like the buyers are willing to step in and protect the market.
Keep in mind that there are some concerns now about the artificial intelligence trade, as there is a new realm of thought that perhaps it’s a massive bubble, and as a result we could see a massive correction. If that ends up being the case, it’s probably going to be a rather brutal one considering that the entire thesis has been about artificial intelligence. Ultimately, I think the question is going to be whether or not we can launch and clear the 24,000 level? If we break down below the 22,600 level, then I might be a bit more concerned.
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