Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

PepsiCo posts earnings beat, but misses on sales

News

Crude oil spikes after US inventories data

News

Risks on the horizon for the S&P 500?

News

GBP/USD retreats after hitting 1-month high

News

US dollar recovers from last week’s losses

News

Should you own Meta Platforms or Alphabet?

Trends & Analysis
News

PepsiCo posts earnings beat, but misses on sales

News

Crude oil spikes after US inventories data

News

Risks on the horizon for the S&P 500?

News

GBP/USD retreats after hitting 1-month high

News

US dollar recovers from last week’s losses

News

Should you own Meta Platforms or Alphabet?

Asset Watch

Where could the NASDAQ 100 bottom?

Tuesday, August 22, 2023

After rallying uninterrupted for much of 2023, the NASDAQ 100 has printed red candles for the last three weeks. And with the weakness bringing the bears out of hibernation, Michael Burry – famous for shorting the housing market in 2008 – placed big bets against the index.
Recent securities filings showed the money manager wagered $739 million (notional) in put options against an ETF that tracks the NASDAQ 100. For context, put options profit when the price of an asset declines. As a result, we may find out soon if these bets prove prescient.
For example, the NASDAQ 100 demonstrated a clear pattern during the 2020-2021 bull market. The blue line below shows how the 20-week moving average remained support throughout the momentous run and largely marked the bottom.

Similarly, after a breakdown below the 20-week MA occurred in January 2022, the metric became resistance in March and December 2022. A rally above the 20-week MA occurred in July/August 2022, but it ultimately failed, and the index sunk to new lows.

More importantly, we’re approaching a make-or-break point in 2023. If the bulls mount a defense, the downside could be roughly 300 points until the 20-week MA hits. In addition, the horizontal red line at the bottom shows how the index’s weekly RSI bottomed near 55 during the 2020-2021 pullbacks, and that level is also approaching.

So, is the NASDAQ 100’s dip a correction within a bull market or something more sinister?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.