Nasdaq 100


The Nasdaq 100’s key technology and social media components were dumped this week as investors grappled with the significance of even higher Treasury yields and rising oil prices. The feeling that inflation could continue is a worrying factor for the actively traded stocks that make up the index.

With the 10-year Treasury yield now at 5% and West Texas Intermediate crude oil prices back up to $90 a barrel, it’s hard to argue that serious inflation is about to get less serious. The inconvenience that could result will lead to the selling of large stocks, which until recently were pursued with a vengeance.

Stocks are actively traded in the Nasdaq 100.

Take the daily price chart for Apple AAPL for example:

Apple daily price chart, 10 21 23.

You can see how the price peaked at just over $197.50 in July, sold off, and now trades for $172. The 50-day moving average (the blue line) shows that price has recently failed to close above this downtrend indicator. Will the $167.50 support hold at the end of September?

Comedian and social critic Jon Stewart has just quit Apple TV, citing the problems he believes the company is having over its use of China and artificial intelligence as themes. He can’t make fun of Chinese leaders and AI?

If that’s the case, it’s not a good sign for the Apple TV platform and for the company that its boring, non-comedic executives are so sensitive to controversy – it’s Jon Stewart, why did you hire him in the first place? Apple investors may have questions.

The daily price chart of NVIDIA NVDA DIA now looks like this:

Apple daily price chart, 10 21 23.

The support level is the red dotted line connecting the late June low to the August low and the September low. If the stock breaks through, it could close the gap from late May (circled in red), when a good earnings report led to a buying spree.

Note that it looks like the 50-day moving average is slowly moving. A gap fill would also be a test of the uptrend of the 200-day moving average, so things will be interesting.

Here is the daily price chart for Tesla TSLA:

Tesla daily price chart, 10 21 23.

The stock has fallen from its July high of $300 to this week’s low of $211, a three-month decline of 30%. That it fell below the August low, a former price support level, is far from encouraging.

Friday’s earnings report was worse than expected – but the lack of buying at Tesla may be related to a feeling that CEO Elon Musk’s botched $44 billion Twitter purchase lacks the “visionary genius” vibe that came before it was created by the financial media. Investors rethinking their opinion of his leadership skills could use it to reconsider whether it makes sense to hold on to the auto stock.

If Treasury and Treasury yields continue to rise, it’s a sign that market participants don’t believe the Fed’s interest rate policy is on the right track. If oil prices continue to rise – with events in the Middle East causing concern – previous highs could be tested. These factors are central themes for the key components of the Nasdaq-100 listed above.

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