The stock market is in a state of flux, with bears and bulls fighting for control. On Thursday, interest rate and recession fears pushed prices down, with the Dow Jones losing 600 points in early trading. However, this may be due to positive data from the US job market, which indicates that the number of initial jobless claims fell by 16,000 to 193,000.
While this data is good news for the Fed, it also suggests that a rate hike may be on the horizon. This, combined with the already-high inflation, is causing concern for investors. However, the stock market is eagerly awaiting consumer prices for September, which will be released this Friday.
At the stock level, Apple is one of the significant losers on Thursday. The stock has tumbled for the second day in a row, down 4.4 percent in early trading. This is due to a downgrade by Bank of America, which cites slowing growth in content and services, and meager demand for iPhones, as reasons for their lowered price target of $160.
Overall, the market is volatile, with opportunities and risks balanced. Investors will be watching Friday’s consumer price release closely to see if it gives any indication of which way the market will go next.
Nasdaq-100
The Nasdaq 100 is in a long-term downtrend, with recoveries in recent weeks largely running out of steam in the area around the 10-day EMA in the daily chart. The Nasdaq 100 is currently in recovery mode and has almost reached the 10-day EMA. A short position with an Open End Turbo Put (ISIN: DE000UK6TYE0) from UBS could be an option.
The downtrend in the Nasdaq 100 is still intact, but the technology index is also massively oversold after the long period of decline. However, the current recovery could already run out of steam in the area around the 10-day EMA in the daily chart in the area around 11,600 points, which is seen as the first support level of a recovery in the overall downtrend. Just above this, at 11,700 points, there is another massive resistance area. This makes a short opportunity on the Nasdaq 100 attractive.
