Daily Market News - 5th Oct 2021

The NASDAQ Composite

When we’re looking at the broader market and deciding if we wanna be long or defensive, there’s a few charts I’m sure many of you keep an eye on, whether it’s the S&P500 (SPX) or the Dow Jones Industrials (DJIA), or maybe it’s the Russell 2000 (IWM) or the Nasdaq 100 (QQQ’s).

Below is my chart for the NASDAQ Composite which looks at not just the top 100 stocks, but gives us a complete picture of what’s going on, and IF the NASDAQ is going to rebound, this MIGHT be the level for it to happen.

I’m sure many of us are noticing the number of failed break downs at the moment, so when I look at a chart breaking down (which the NASDAQ could ultimately do), it has paid quite well recently to look at things through the lens of…

“with failed moves come fast moves going the opposite direction”…

If the NASDAQ is going to rebound, you can bet there are stocks that could ultimately rip higher on a failed break down and these are the types of charts I’m talking about. (I posted this chart to social media 10 days ago or so also)

TTWO Chart

To the other side of it, we know Tech has been hit badly during September, so it might pay to have an understanding of what you’re signing up to before buying.
Lets look at AAPL and the drawdowns you need to be comfortable with.

Over the last 18 months we can see significant drawdowns, and once again, we’re seeing a pull back to what historically has been a decent buy point.

If the NASDAQ is going to decline and REALLY break down, you can bet AAPL will be front and centre given the Market Cap Weighting, so it will be worth keeping an eye on these Mega Caps and whether they hold these significant technical levels.

Crude Oil Update

Last week I posted a chart for Oil and the potential break out that was on the horizon for a supported thesis of $100 a barrel… for me, rather than focus on Tech…. it would make sense to not lose sight of the elephant walking past in plain sight in a rising rates world… Crude Oil could potentially move higher from current levels.

Above $77… what’s not to like?

I’ll be watching all the charts very closely.

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