After a day in which the Nasdaq 100 produced a looking glass into why it remains dangerous, speculators who are participating and surviving need to remain vigilant. As of this writing the Nasdaq 100 is around 29,850.00 via futures.
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Yesterday’s price action in the Nasdaq 100 was a reminder why it is not only difficult to be a day trader, but why participating in the markets can sometimes lead to more questions than answers. The dip lower to start trading on Monday via futures action was strong and the Nasdaq 100 again challenged troubling depths, but then a fast and powerful surge higher was seen and remained throughout the day. A gain in the cash market for the Nasdaq 100 produced a 2.25% return.
However, speculators who are not using cautious leverage in the Nasdaq 100 are vulnerable to swift changes in seas. The upwards ability in the index has been sustained early today and the Nasdaq 100 is near the 29,850.00 mark as of this writing. It almost seems like some investors have breathed a sigh of relief and decided to show optimism again. But for how long?
Dynamic Velocity and Speculative Betting on the Nasdaq 100
Chatter surrounding the Nasdaq 100 remains nervous. While some are talking up the ability of the index to deliver solid results and brag about its resilience. Others can clearly point to the volatility of the Nasdaq 100 and its casino like results the past handful of weeks. Spikes up and down are dangerous things to wager on unless extreme care is being practiced by traders.
Sentiment is certainly driving the Nasdaq 100 for the moment. Anyone who suggests that cheap values is the motivator of yesterday’s buying surge should rethink their opinions. Yes, perhaps the Nasdaq 100 was oversold, but investors are not generating their participation on the notion that they belief equities are cheap, they are likely following the crowd and seeking profits while they can jump onto momentum. Meaning the same investors and large players can jump off the train again when they want to abandon ship.
Holiday Weekend Considerations for the Nasdaq 100
The July 4th holiday is approaching quickly. Yes, there will be trading this coming Friday, but day traders need to prepare for the notion volumes could be turbulent as Thursday and Friday come into focus.
Because many large players will start disappearing before the long weekend, which means trading volumes could prove odd.
The price action of the Nasdaq 100 has brought the index back to higher ground, this morning’s futures trading has been positive.
Traders need to remain observant and practice solid risk management when dealing with the Nasdaq 100.
The velocity of the moves in the index are swift and dangerous for even large players.
The index is exhibiting extremes and this will remain a theme near-term.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 29,860.00
Current Support: 29,820.00
High Target: 29,970.00
Low Target: 29,680.00
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