×

Why I'm Buying the NASDAQ

60477870
Getty Images

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.

Watch "Futures Now" Tuesdays & Thursdays 1p ET exclusively on FuturesNow.CNBC.com!

Like us on Facebook! Facebook.com/CNBCFuturesNow

Follow us on Twitter! @CNBCFuturesNow

Videos

  • Rates are entering a new phase in their cycle: Yamada

    Bonds are entering a new rising rates cycle for the first time in decades. Technician Louise Yamada explains what this means for the market.

  • What's next for the oil market?

    Following a recent correction, Tom Kloza of the Oil Price Information Service tells CNBC's Jackie DeAngelis where crude is headed next.

  • Futures Now, February 15, 2018

    The market's coming back, but one trader isn't buying the bounce. Technician Louise Yamada says this is the next line in the sand for rates. And Oil's back at $60, but Tom Kloza, Oil Price Information Service, says the rally will stall, with CNBC's Jackie DeAngelis and the Futures Now traders.

Host Bio & Watch Now

Trader Bios