Learn how to trade futures and options at our webinar https://capstonetradingsystems.com/webinar-replay-and-special-offer1636386515666 I want to share 7 reasons why the NASDAQ 100 could go to 25,000 and how to trade it. This might sound crazy, but I'm going to show you how easily it could happen and how to potentially capitalize on it. We live in a world of extremes right now of extremes and I believe this is more probable than the market currently believes, which gives us the opportunity and the potential advantage. Here are some of the top fundamental and technical reasons. Number one, contrarian market sentiment. It is hard to measure market sentiment. Everyone is starting to cry asset bubble, but I don't believe we've seen real euphoria yet in the market. Legendary investor, Sir John Templeton has a contrarion map of market cycles. -Bull markets are born in pessimism, and I believe we saw that in the pandemic lows when the federal reserve stimulated the economy during the coronavirus pandemic and how it is the beginning of the current bull market. -Grows on skepticism, the market continued to rally during skepticism of coronavirus. -Matures on optimism -Dies on euphoria Once again, this is hard to measure, but I believe that we are just now entering euphoria and the market must go through a euphoric stage before it dies - according to this map. Number two, the seasonality November through May is the strongest time of the year. Most of the long-term investment gains in the stock market have been made during this time of year. Number three, historical price action of the stock market. If you take a look at the contrarian market sentiment, as well as the seasonality, you see that during the dotcom bubble October and from teh end of October 1999 to the high in March 2020, the Nasdaq surged 82.6%. Number four, recent price action in the stock market over the past year. When we look at Meme Stocks such as Gamestop GME, AMC, they are holding at prices 10X their valuations. Avis car rental zoomed from 100 to 500 in a short period of time. Tesla has gone up 1000% since the pandemic low. We don't expect the Nasdaq to soar 1000%-5000% but a 25-30% move in the next 6 months is certainly possible with the massive liquidity in the markets. Number five, the vicious nature of buying and the difficult to short the market shows up in the "tape". the dip buying is turning into momentum breakouts. Number six, technology is deflationary. This means that during times of inflation technology can improve processes and lower costs associated with bringing goods and services to the consumer and ultimately lower inflationary pressures. So while we are facing inflation, investing in technology is a valid concept that could continue favoring technology stocks. Number seven, the biggest fundamental factor is the federal reserve. Monetary policy remains easy for the next six months. They've reduced some bond buying but the stimulus is still at a pace of over 1 trillion per year in their bond buying program. Interest rates rates continue to remain very low at emergency rates zero to 0.2, 5%. This provides massive liquidity of the market. And whether you agree with the policy or not, it is there. As long as that fundamental factor, is there the opportunity to continue to ride that wave is there. You see the fed stimulus since 2009, and how it has accelerated into the stock market. There are three notable events in relation to Fed stimulus. The housing market crashed in 2009 and the federal reserve came in with QE one, QE two QE, three and held interest rates at 0.0 - 0.25%. under Fed Reserve chairs Ben Bernanke and Janet Yellen. Jay Powell had the taper tantrum and reversed policy to appease the market. During the pandemic Jay Powell and the Fed added another $4 trillion to the Federal Reserves balance sheet. The S&P 500 has doubled off the lows. This stimulus is still there and it's the biggest fundamental factor. We are short term traders in futures and options, and we went to invite you to subscribe to our channel, continue to learn more, how to trade the NASDAQ to 25,000. Learn how to trade futures and options at our webinar https://capstonetradingsystems.com/webinar-replay-and-special-offer1636386515666
