The Nasdaq 100 produced a solid move higher on Monday as it traversed above the 24,750.00 vicinity, but then reversed lower. As of this morning via futures trading the index is near the 24,626.00 ratio with fast conditions.
Day traders who seek opportunities via wagering on the major U.S equity indices will find plenty of action today and remainder of the week. A U.S government shutdown looms and this is going to cause violent reactions for the Nasdaq 100 and other major indices. Yesterday’s price action saw a surge higher which took the Nasdaq 100 above the 24,750.00 mark momentarily, but was then followed by swift selling.
Speculators may love the coming environment because it promises to be electric. But let’s remember that an electric charge not handled correctly can kill a person too. The Nasdaq 100 did not break a record higher yesterday, but it did come within sight of apex highs made on the 23rd of September when the 24,790.00 realm was a factor. It appears investors want to buy, but conditions over the short and near-term carry a lot of dangerous questions.
Long-Term Viewpoints and Seeking Value
Day traders seek momentary movements. Frequently, speculators are buying and want to cash out profits rather quickly. The same goes for those brave enough to be short-sellers who then get out of a position by buying, and hopefully cashing out their profits. Investors who believe the Nasdaq 100 is going to go higher long-term will have the upper hand today, this because if the U.S government shutdown occurs they will see plenty of volatility.
If downside price action in the Nasdaq 100 starts to be seen if noise from Washington D.C grows in the coming hours, this may provide an opportunity for long-term investor to buy equity at what may be perceived as discount prices. Day traders however will face a dilemma, because if the U.S shutdown occurs it will be hard to predict when it will end. The shutdown could be quick or it could last through the weekend. Time factors in trading and what takes place in Washington today and tomorrow will case reactions for the Nasdaq 100. What feels cheap in the short-term may become cheaper in the near-term.
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Gambling On Behavioral Sentiment Short-Term
Today and tomorrow’s trading on the Nasdaq 100 will be a purely behavioral sentiment wager for short-term traders. They will certainly see opportunities but taking advantage of price velocity and reflexive moves could prove difficult.
- If a trader doesn’t have the stomach for emotional rollercoasters it might be best that they sit out today and tomorrow in the U.S indices.
- The Nasdaq 100 has shown a desire to remain near its record heights and will likely move higher long-term, but yesterday’s buying produced selling as sentiment shifted.
- This is a warning sign for day traders to remain cautious.
- Looking for discounted values based on short-term instincts could lead to profits today, but it could also lead to a fast loss of money.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 24,655.00
Current Support: 24,600.00
High Target: 24,710.00
Low Target: 24,450.00
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