Once again, we see investors and traders a like flocking to the NASDAQ 100. Gaining more than 1.2% the NASDAQ 100 continues to be the leading index amongst the major indexes. Far behind the leader the S&P 500 and Russell 2000 simply could not find the strength to challenge large cap technology stocks. Semiconductor stocks led by AMD and NVDA pushed were leading gainers for the NASDAQ 100. No surprise Information Technology stocks were the leading group in the S&P 500. Energy lagged as we continue to see energy stocks fall in concert with crude oil and natural gas. This market is unrelenting, and money continues to find its way to the NASDAQ. The Russell 2000 continues to be a lagging index, but we have large cap technology stocks pushing us higher. No one knows when this will end. We will continue to stay on this market and take us where it wants to go. Many will try and predict the top but will fail. Gain from our experience and process.
Volume was on the light side as Monday’s typically are light volume days. Futures are pointing to a higher open for this morning. We do see Crude Oil futures trying to maintain the $50 level. Falling crude oil prices are not a good thing for countries who rely heavily on the commodity. Most notably are Russia and Saudi Arabia. Geopolitical tensions seem to be stable but if we continue to see crude oil prices fall it would not be a surprise to see this situation change. For the US consumer falling Crude Oil and Natural Gas prices are a good thing. Not great for those who drill for the commodity. Continue to stick with the trend in the stock market. There is no need to be a hero.
The rise in TSLA fueled by stubborn shorts certainly leads one to look for other opportunities. While BYND as the daily volume to overcome its shorts, who have shorted more than 28% of the available float it has set up to potentially move like TSLA. Will it? Time will tell, but certainly is something to watch over the coming trading days.
AAPL, GOOGL, and MSFT continue to move higher pushing the NASDAQ higher. AMZN is doing its part too. FB and NFLX are still viable but have fallen behind. Money continues to flow to these large cap names. At this point we can come up with reasons as to why, but it really does not matter. Until we see heavy distribution money will continue to flow to these names.
We hope you have a great week of trading. Always have a plan including cutting your losses and right-sized positions. Good luck.
