Why I'm Buying the NASDAQ
The NASDAQ has shown impressive strength in the face negative headlines. Over the last two days, NASDAQ 100 futures have rejected the day's lows, and managed to finish with only mild losses.
The main reason for the relative strength is probably are surgence in Apple shares, as Doug Kass predicted on Thursday's episode of Futures Now. Apple accounts for some 13 percent of the NASDAQ weighting.
I believe we could be on the verge of another leg up in the NASDAQ, as global uncertainty may push money into the relative safety of U.S.assets. Big technology companies with large cash balances could lead the way.
I would be interested in establishing a long in June NASDAQ futures if they trade to 2810, as this will be a clear signal ofstrength. My upside objective would be 2890, and I would put a stop loss down at 2765.