The Nasdaq Composite is maintaining its upward trend with few bearish influences and positive growth impulses. Recent lower-than-expected US inflation figures and robust US activity data are supporting this trend without concerning inflation developments.<\/p>\n
An upcoming August 1 tariff deadline may create some defensive market behaviour, but past experiences suggest that outcomes could be positive. Potential risks include tariff-induced growth scares or changes in interest rate expectations. However, if the Federal Reserve opts to wait or cut rates, the market may continue its upward movement.<\/p>\n
The daily chart shows the Nasdaq Composite consistently reaching all-time highs due to the lack of bearish influences. Buyers have favourable risk-to-reward ratios around previous highs at 20,202, complemented by a trendline. Sellers would seek a price break below this to consider increasing bearish investments towards 19,200.<\/p>\n
On the 4-hour chart, prices are within a rising channel. Buyers utilise the channel’s lower bound to aim for new highs, while sellers target the upper bound for potential breaks downward to 20,202. Similarly, the 1-hour chart indicates buyers are likely to continue capitalising on the lower bound for new highs, while sellers anticipate breaks for pullbacks.<\/p>\n
Upcoming US Jobless Claims and Flash US PMIs data will provide further economic insights.<\/p>\n
Given the upward bias, we see opportunities in strategies that profit from rising prices, like buying call options or selling put spreads. The Nasdaq 100’s gain of over 20% year-to-date is fueled by conditions like the recent core PCE inflation rate holding steady at 2.6%, easing concerns of aggressive rate hikes. This environment validates taking on calculated bullish risk.<\/p>\n
Strong economic signals, such as the recent S&P Global Flash US Composite PMI hitting a 26-month high of 54.6, support this positive momentum. Therefore, we would view any pullback towards the 20,202 support level as a chance to initiate or add to bullish positions. Selling cash-secured puts at or below this level could be an effective way to collect premium while setting a favorable entry point.<\/p>\n
The primary risk on the horizon remains the August 1 tariff deadline, which could introduce volatility, especially with Mr. Trump’s unpredictable policy shifts. To hedge against a potential growth scare from this event, traders could consider buying short-dated put options as a form of insurance. This strategy provides downside protection without forcing the liquidation of core bullish holdings.<\/p>\n
In the bigger picture, the Federal Reserve’s dovish lean provides a significant backstop for the market. Historically, periods following a Fed pivot to a more accommodative stance, like we saw in 2019, have been highly favorable for growth-oriented assets. This precedent suggests that even if rate-hike fears or tariff shocks cause temporary dips, they are likely to be buying opportunities.<\/p>\n
The index is currently trading within a well-defined rising channel, presenting clear boundaries for traders. We can use this pattern to structure trades like bull call spreads, buying calls near the channel’s lower bound to play for a bounce. Conversely, if the price approaches the upper bound, it may be prudent to take some profits or hedge, as sellers have historically become more active there.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Nasdaq remains strong amid low inflation, strong data; buyers target highs, sellers await potential pullbacks.<\/p>\n","protected":false},"author":62,"featured_media":16992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=27010"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16992"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=27010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=27010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=27010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}