Master Nasdaq 100's Sharp Moves
In this video, Chris Ashton, Head Mentor at Corellian Academy, provides an in-depth analysis of the NASDAQ 100 Index, commonly known as the US Tech 100.
First, Chris introduces the NASDAQ 100 Index, explaining that it tracks the performance of major technology and growth-oriented companies, excluding financial institutions. He highlights key companies within the index, including tech giants like Apple, Microsoft, and Tesla. The NASDAQ 100, with a total value of $25.5 trillion, serves as a benchmark for the US stock market.
He then discusses the main factors influencing the NASDAQ 100, which include the performance of major tech companies, macroeconomic conditions (such as interest rates and inflation), technological advancements, and earnings reports. He emphasises the importance of monitoring macroeconomic indicators like GDP, employment data, and Federal Reserve interest rate decisions, as these can significantly impact the index's movement.
The webinar also focuses on volatility within the NASDAQ 100, citing an example of the index experiencing a dramatic 11.5% drop, followed by a swift recovery. This volatility creates both opportunities and risks for traders. Chris explains that staying informed, using stop-loss orders, taking profits, and employing technical analysis techniques, such as Bollinger Bands, is important to manage trades effectively.
A key takeaway from the session was a case study on trading the NASDAQ 100 CFD based on Nvidia's Q2 earnings report. Chris demonstrates how he used technical analysis and risk management tools in different scenarios, showcasing practical strategies for traders.
Finally, Chris highlights upcoming events, including the Federal Reserve's interest rate decision, which can influence NASDAQ 100 volatility and set the tone for market sentiment.
