Instrument: US100
Bullish Preference:
A Buy position is envisaged if the price trades above 15408.10 with take profit at 15456.25
Bearish Preference:
A Sell position is envisaged if the price trades below 15342.94 with take profit at 15310.41
Fundamentals:
2:30pm USD Unemployment Claims
8:00pm USD Fed Chair Powell Speaks
Comment:
The Invesco QQQ Trust (NASDAQ: QQQ), an Exchange-Traded Fund (ETF) launched on March 10, 1999, and with net assets worth $195 billion, has been under scrutiny due to its high concentration in large tech stocks, which contributes to volatility risk and limits broad diversification.
It was noted that the fund’s top ten holdings, including Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Broadcom (NASDAQ:AVGO), Alphabet (NASDAQ:GOOGL) class A and B, Tesla (NASDAQ:TSLA), and Adobe (NASDAQ:ADBE), account for about half of the fund’s total assets. While the fund has a heavy concentration in tech stocks (57%), the Nasdaq-100 index it tracks is not purely a technology index but also includes sectors like consumer discretionary and healthcare. This structure may not cater to investors seeking a tech-focused or broadly diversified investment.
Fed Chair Jerome Powell is scheduled to speak at an International Monetary Fund (IMF) conference at 2 p.m. ET (1900 GMT). He had refused to comment on monetary policy at another conference on Wednesday.
Federal Reserve Bank of Richmond President Thomas Barkin is also expected to discuss the outlook for the U.S. economy later in the day.
Investors will also assess a Labor Department report, due at 2:30 PM , which is expected to show jobless claims edged up to 218,000 for the week ended Nov. 4 from 217,000 in the prior week.
Analysis: SCRUM Team