- The Nasdaq 100 rallied rather significantly during the trading session here on Thursday.
- So it looks like we will continue to find plenty of buyers.
- I like the idea of buying short term pullbacks at this point, but I also recognize that the nonfarm payroll announcement on Friday will cause a lot of volatility.
- This is normal, but quite often will continue to offer buying opportunities once the initial reaction happens, assuming it is negative for the market.
With that in mind, I think you have to look at this through the prism of a market that you're looking to buy dips. Friday may give you that opportunity to pick up cheap contracts. Underneath we have the 17,775 level offering support. The 50 day EMA is sitting right there as well. In other words, I think there are plenty of buyers waiting to get involved.
The Noise Continues
Keep in mind that the market has been very noisy as of late, but that's not a huge surprise considering we shot straight up in the air for the first several months of the year. If we can break above the 18,500 level, I think that the Nasdaq 100 will continue to go much higher, perhaps grinding its way towards the 19,000 level over the next couple of weeks.
Regardless, this is a market that you cannot short. It is far too strong and there are a lot of people out there playing the momentum. Remember, the Nasdaq 100 is not an equal weighted index. So, it basically comes down to a handful of stocks rising in order to drag everybody else up with it. As far as the index itself is concerned, I have no interest in shorting, like I said.
But if we were to break down below the 17,775 level, then I might look for a value play on a deeper correction. In that environment, you might be able to go a little bit more, buy and hold on to a value trade, but we will have to wait and see.
Ready to trade the NASDAQ 100 Index? Here are the best CFD brokers to choose from.