The Nasdaq 100 is once again finding fast momentum upwards and is near the 30,660.00 mark via futures trading this morning, this after yesterday’s fast climb up on the cash market.
Amazing what a mere week and half can do to make people change their perspectives. Only ten or so days ago, the Nasdaq 100 was suffering headwinds likely caused by profit taking and some fear. Now after yesterday’s 3.00%+ gain and this morning’s early action on the futures markets the Nasdaq 100 is dancing near 30,660.00. And, yes, SpaceX is a large part of this puzzle in many respects.
SPCX which had its IPO this past Friday finished Monday’s trading above the $190.00 mark. Appetite for Elon Musk’s company is lighting a fire under the Nasdaq 100 and speculators are piling in. This doesn’t mean the rocket like ride higher is going to continue, but is demonstrates how dangerous it is to bet against Elon Musk when his magic is working.
Top Regulated Brokers
31,000 Level Likely Being Discussed
Yesterday’s finish higher and today’s early trading are putting the Nasdaq 100 in sight of record apex values seen in early June. Day traders should not venture forth without risk management working if they are going to pursue the buying frenzy, because a sudden downturn could easily be sparked. However, financial institutions seemingly have put aside fears for the moment and are remaining part of the crowded field of buyers too.
While tomorrow’s Federal Reserve decision awaits, speculators may still step forth and want to be buyers in the near-term. Talk of the 31,000.00 level being a target is speculative but sounds reasonable. The Fed knows inflation is high in the U.S for the moment. But the new Fed Chairman may fight against an interest rate hike tomorrow based on the belief that WTI Crude Oil prices will be coming down even more than they already have as the Iranian agreement goes from being discussed to fact. If all of the above holds and the Fed doesn’t increase the Fed’s Fund Rate tomorrow, today and Wednesday could see more positive juice delivered for the Nasdaq 100 as large players wager.
Leverage and Risk Appetite
Day traders may be convinced the Nasdaq 100 has more room to go higher. Financial institutions may feel the same way. However, the risk of a selling wave does still exist.
Traders should not over leverage their positions, because what can be gained in the blink of an eye can also be lost in the same exact amount of time.
SpaceX and its results will influence the Nasdaq 100 strong the remainder of this week as it remains a focal point.
Speculators without deep pockets should remind themselves about the caution they felt only two weeks ago regarding the Nasdaq 100.
The cash Nasdaq 100 is sure to open with plenty of volatility early again today in a few hours.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 30,675.00
Current Support: 30,620.00
High Target: 30,890.00
Low Target: 30,550.00
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.