- The NASDAQ 100 was a bit of a blur during the month of December, which is somewhat shocking given that one of the most followed premises in the stock market is the so-called “tentacle set.”
- After all, it is very likely that we will continue to see traders coming into the market to increase year-end profits, especially those who have to show their clients some kind of year-end profit.
- If they don’t own all the right assets, they will usually jump in and buy them. These are all the usual suspects like Apple, Nvidia, etc.
Santa never came
Santa never came this year, and that’s a bit of an anomaly. It’s not a 100% guarantee that a Santa rally will happen, but it’s something that happens enough that people just assume it will happen. The fact that we haven’t suggests that maybe the NASDAQ 100 is starting to struggle a little bit, and we might see a bit of a pullback for the month of January, but a lot of it will come down to how people feel about animal parents. At the end of the day, you have to remember that the U.S. economy is expected to do pretty well, and I think despite the fact that we have higher interest rates, traders tend to believe that the direction of the U.S. economy is still higher. In this environment, we’ll very often see technology stocks as some of the biggest winners because the NASDAQ 100 is one of the main places to play in that sector, and of course the fact that it’s one of the biggest swings.
Going from here I would expect the 20,000 level to be a pretty significant support, and as long as we can stay above then I think it’s probably a “buy on the dip” market overall, but I expect January may be a bit noisy in some places . I certainly wouldn’t miss this market.
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