Let’s get something straight from the start in this article, day traders looking to pursue positions in U.S equity markets for short-term endeavors are gambling. Day traders who are looking for quick profits under the current conditions are not investing, they are speculating. The Nasdaq 100 gained slightly yesterday reaching the 24,655.00 ratio as a closing high via cash market conditions, but in early futures trading this morning the index is down and near the 24,586.00 vicinity with fast fluctuations.
Looking for opportunities to buy the Nasdaq 100 on the feeling its oversold may be justified, but equally it may be wrong. Betting on CFDs particularly, which are outside of the real cash market, and do not move the needle per actual results in cash or futures Nasdaq 100 trading is like spitting into the wind. The Iranian war continues to make financial institutions nervous and this is causing choppiness.
Outlook Battles and Sentiment Shifts
Yesterday’s move upwards can be interpreted as buying by large players who believe the Nasdaq 100 was in oversold territory. This morning’s results which are lower can be looked at as potential profit taking by large short-term participants. But is any of this correct? Tomorrow the U.S Federal Reserve will make their FOMC decision public, but the rhetoric is likely already baked into the price of the Nasdaq 100. The Fed will sound cautious. They are worried about the Iranian war too.
Sentiment shifts are causing near-term headaches. For those who are optimists it might be rationalized that companies with exposure to energy prices/ inflation may suffer and all other corporations will continue to be unaffected, but that can be questioned too, because petroleum products effect not only logistics, but manufacturing. The notion that momentum upwards will eventually begin again in earnest is intriguing as a way to gauge short-term betting, thus hoping to jump onto the bandwagon. But timing market conditions during volatility is historically dangerous.
Day Trading Adventures and Betting
Technical traders may believe they have the upper hand currently, but can they accurately predict shifting emotions among financial institutions? The answer is likely no.
Momentum accounts for better interpretations if support and resistance levels are tested, this may allow day traders an opportunity to venture forth with bets on direction.
However, short and near-term the Nasdaq 100 will remain hard.
The ability to go higher yesterday was nice, but the Nasdaq 100 is still within one week, one month, and mid-term lows.
While this may make the Nasdaq 100 look cheap and tempting for upside consideration, catching a long lasting wave of momentum higher remains difficult.
Instead conservative traders should look for quick hitting results that use tactical orders and solid risk management.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 24,595.00
Current Support: 24,530.00
High Target: 24,680.00
Low Target: 24,350.00