With the NASDAQ (although at its highest point) up over 13% this year just a couple of days ago, the uptrend and demand for tech based equities seem to be never ending. Indeed, having begun the year at 6903, the double digit percentage gain was nothing short of impressive.

Yesterday, we felt the full force of reverberations from the catalyst of yet another announcement on the potential of a trade war from the Trump administration. At its worst point yesterday, the high tech index was down over 2% – although the move lower made logical sense to me, it felt like an over exaggerated move in the end.

We come to a key point here: depending on your point of view, this is either a perfect time to sell should the trade war come to fruition (likely negatively affecting many constituents in the NASDAQ) or the opposite if you feel the move lower is over blown, now some 4% from its all time high. This could be a great time to enter long positions based on the possibility of a move back to the highs.

Chief Trader,

Jordan Hiscott

The above-mentioned market views and content reflect only the opinion of the author, not that of ayondo. This service is for informational purposes only and does not constitute advice or investment advice.

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