Chart created with TradingView[1]
Nasdaq 100, DAX 30, Nikkei 225 Forecasts: Neutral
- The Nasdaq[2] 100 eagerly awaits earnings from Apple, Amazon, Facebook and more
- German and Euro[3] area GDP data is also due in the week ahead, a key event for the DAX 30[4]
- The Nikkei 225[5] will set its sights on the fast-approaching interest rate decision from the Bank of Japan
Nasdaq 100 Forecast
Outlook: Neutral
Earnings season is in full swing and the week ahead will see the release of quarterly reports from some of the world’s largest publicly traded companies. Apple, Amazon and Facebook are scheduled to report after Thursday’s close, a set of stocks that collectively account for more than 27% of the entire Nasdaq 100. Blue chip names like Boeing, General Electric, Pfizer and Ford will also report next week, but the speculative appetite in the big-tech names should afford them the most influence and market-moving potential.
Source: Slickcharts
To that end, market participants have high expectations for the FANGMAN group given their lofty share prices and after their blowout reports last quarter. Therefore, stocks like Apple, Amazon and Facebook will be highly scrutinized and could see a less-than-perfect report result in a seemingly drastic price decline.
Nasdaq Trading Basics: How to Trade Nasdaq 100[6]
Either way, forecasting directional moves following an earnings report is incredibly difficult, so strategies that can benefit from heightened implied volatility may be ideal at this stage.
Nasdaq 100 Price Chart: 4 – Hour Time Frame (September 2020 – October 2020)
Regardless, the Nasdaq 100, Dow Jones[7] and S&P 500[8] may wait to stage serious moves until the Presidential election has passed. Given the massive uncertainty surrounding the vote,
