It’s all about technology with the Nasdaq 100 E-mini futures, which traded at high levels before their 10% sell off at the beginning of November. Analysts say tech stocks are part of the reason for the Nasdaq 100’s success and will bolster it in the months ahead.
“Since Apple announced the iPhone, it gave people good feelings about tech stocks and that other companies would have the same success,” says Larry Levin, president of Secrets of Traders. Steady performance in the tech sector and the global economy should keep the Nasdaq 100 on solid ground.
“Tech is the one sector not impacted by the subprime meltdown or the declining dollar,” says Andrew Waldock, principal at Commodity and Derivative Advisors.
Possible pitfalls for the Nasdaq 100 include the credit situation and the economy in general. If consumer spending slows, Levin says, “It’ll cause a slowdown in the economy in general and people will be less likely to buy gadgets that tech companies like Cisco and Microsoft make their profits on.”
Waldock says growth in China and India will continue to fortify the tech boom. “Developing countries moving up the technology ladder have helped us out. The tech sector is tied more to the global economy. As long as the global economy continues to expand, [the Nasdaq 100] is going to be fine,” he says.