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Friday, 3 August 2018

What to expect from NASDAQ?

In recent days, the big US and European indices have experienced difficulties and slowed their growth amid worries about a global trade war. Tensions between the United States and China continue to rise after US Trade Representative Robert Laitizer announced that the US is considering increasing duties from 10% to 25%.
Looking at what is happening with the NASDAQ index and the rest of the world's largest indexes since the beginning of the year, we will notice that at the end of January we had a fairly deep correction (around 12-13% on NASDAQ). But this adjustment was very easily accepted by the market and new buyers quickly entered.
After this correction, which ended in February, the S&P 500 and Dow Jones did not manage to mark new highs. The same thing happened in the European indexes. Only the French CAC40 managed to reach a new peak, but failed to keep it. In contrast, NASDAQ gained a 6% lead and remained the only bullish base index.
The technology companies that have the greatest weight in the so-called FANG (Facebook, Amazon, Netflix, Google) and Apple continue to grow (except for the results of the reports).
This means that cash managers are starting to invest in just one group of shares, and if there will be some adjustment in these companies, there will be tremendous problems for long positions in NASDAQ.
Still, my expectations are that NASDAQ is likely to continue to rise in the short to medium term (next 1-2 weeks).


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