News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
Nasdaq 100 Forecast: Are Investors Apprehensive About Big-Tech?

Nasdaq 100 Forecast: Are Investors Apprehensive About Big-Tech?

Peter Hanks, Strategist

Nasdaq 100 Forecast

Nasdaq 100 Forecast: Are Investors Apprehensive About Big-Tech?

The Nasdaq 100 is on pace to end the week roughly 1% higher as it enjoys fundamental tailwinds from a dovish ECB, thawing US-China trade tensions and expectations of looser monetary policy from the Federal Reserve. The culmination of factors has helped propel the tech-heavy Index near its all-time highs, but it has slightly lagged the S&P 500. The relative underperformance of the Nasdaq expands upon the theme I highlighted earlier this week with momentum stocks lagging their value counterparts.

Nasdaq 100 price chart forecast

Source: Bloomberg

To be sure, the Nasdaq-tracking QQQ ETF registered net inflows for the week alongside SPY. Compared to their relative assets under management (AUM) however, QQQ lagged its larger peer. With assets under management of roughly $75 billion, the additional $574 million that QQQ has seen flow into its coffers in September stands at just 0.79% of total AUM. SPY on the other hand, saw an additional $6.6 billion in fresh capital during the same span – roughly 2.42% of the fund’s total $273 billion AUM.

S&P 500 price chart

Source: Bloomberg

Therefore, the relatively modest underperformance in price has also been reflected in the corresponding exchange traded funds. Interestingly, the mega-cap tech companies of Microsoft, Apple, Amazon, Facebook and Google make up significant portions of both indices, but account for nearly 45% of the QQQ ETF. Thus, it can be argued the leaders that have been responsible for much of the bull market’s run are starting to slow. This can be further evidenced by comparing the five stocks to the entire Nasdaq.

S&P 500 Price Chart: Daily Time Frame (January – September)

Nasdaq 100 price chart

S&P 500 overlaid with Microsoft, Apple, Amazon, Google and Facebook relative to Nasdaq.

Given the relative performance, it begs the question what factors are to blame. Multiple arguments could be made, but a gradual rotation out of the high-flying momentum stocks seems to be the most popular among financial news media at present. Another potential catalyst is the antitrust probe facing Google and talks of supplementary probes into Amazon, Facebook and Apple. At a minimum, the regulatory scrutiny adds uncertainty to the collection of tech stocks – an undoubtedly bearish theme in the investing world.

Whatever the underlying factors may be, the commentary offered at next week’s FOMC meeting will likely dominate price action in the short and intermediate terms. Consequently, traders should keep a watchful eye on the degree of dovishness out of the Fed and how it aligns with the market’s lofty expectations. Until then, follow @PeterHanksFX on Twitter for updates and analysis on the major stock indices.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Dow Jones, Nasdaq 100, DAX 30, FTSE 100 Forecasts for the Week

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES