A Pattern of Nasdaq Weakness Not to Ignore

Despite the initial disdain for tech stocks displayed by investors in a post-Trump election world, it has been the Nasdaq leading the equity markets higher. In fact, in recent trading sessions broad-based stock indices such as the S&P 500 have showed signs of cracking, but strength in the tech sector eventually enabled the broader market to recover. However, we wonder what the S&P would be doing if it weren't for abnormally bullish trading in Nasdaq stocks. Perhaps we'll soon find out. A seasonal high in the Nasdaq is due today!

According to our friends at MRCI, the March Nasdaq futures contract has habitually traded lower in the second half of January. A trader going short the March Nasdaq futures on Jan. 10 and holding through Jan. 30 would have been profitable roughly 93% of the time throughout the last 15 years, based on stats provided by MRCI. In other words, it has worked on 14 of the previous 15 occasions....288 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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