The Nasdaq 100 jumped to kick off the Wednesday session, as interest rates are dropping, due to the potential progress in peace talks between Iran and the United States.
NASDAQ 100
The Nasdaq 100 has rallied a bit during the trading session here on Wednesday in early trading, but it is worth noting that the markets are basically a little overstretched here and they are reacting to headlines coming out that the United States and the Iranians are supposedly getting closer to peace and that makes people excited.
That drove down the rates and now we are in a “wait and see” mode. I do think that we're overextended, and I think that's the real story here and as a result, I think it's probably almost impossible to buy all the way up here.
Overextended Market Conditions
You need some type of pullback in order to offer value. I just don't feel like chasing the Nasdaq 100 at the moment to hang on to it for 3 weeks to become profitable again.
I do think that the rates story and the 10-year yield in the United States specifically will continue to be major driver here. Plus, we are in the midst of earnings season. AMD absolutely launched from pre-market trading so that will add a little resiliency here, but this is a chart that's gone straight up in the air since basically the beginning of April.
And now we find ourselves looking at a market that's very difficult to get into, you may just have to hold your nose and buy it but I prefer to do it on some type of dip where I can get on the right hand side of the V-shaped pattern and at least have a stop loss in place. A day or two of negativity really gets me interested in the Nasdaq 100.