Archive for the ‘NASDAQ’ Category
Stocks continue to maintain a positive bias in January, with technology and small-caps leading the charge. The NASDAQ is up over three percent in the first two weeks of January. The small-cap Russell 2000 is up 2.30%, while DOW and S&P 500 are up about 1.33% and 2.07%, respectively, in January.
The bulls appear to be in full control at this juncture.
On the charts, the NASDAQ has joined the Russell 2000 to move above their respective previous chart highs. This is bullish, but we need to see if the indices can hold.
There’s nothing wrong if you are long stocks at this time, as the market continues to want to trend higher and, as an investor or trader, you want to ride this upside wave. However, you should also be careful due to a technically overbought condition and the absence of any sort of correction. The reality is that markets cannot go up without a pause or correction. It will happen at one point.
As an investor and trader, what you can do when you feel the market may be set to take a pause and stall is to write some covered calls on your long positions. This appears to be the case at this juncture.Covered call writing (also called Buy-Write) means you hold an underlying position in the stock represented by the call option. It is much less risky compared to naked. Read More
The market is on a nice upward trend and we have yet to see any signs of topping. Yet, for stocks to move higher, there must be a fresh catalyst.
Big, brand-name companies always get the early headlines during earnings season, because they have the big accounting departments to get their books done early. Right now, if you want to know where the broader stock market is going, all you have to do is follow the Dow Transports and the NASDAQ. Railroads and large-cap technology are the two key barometers for this market.