Don’t Fight the Tape; Stock Market Returns to Uptrend, Nasdaq 100 Blows Out 13,000 Resistance Level
The stock market has been on a rollercoaster ride over the past year, with the COVID-19 pandemic causing unprecedented volatility. However, recent trends suggest that the market is returning to an uptrend, with the Nasdaq 100 blowing out the 13,000 resistance level. For those unfamiliar with the term, don't fight the tape is a phrase used by traders to remind themselves not to go against the current trend of the market. In other words, if the market is trending up, it's generally not a good idea to bet against it. So, what's driving this recent uptrend? There are a few factors at play. First and foremost, the rollout of COVID-19 vaccines has given investors hope that the worst of the pandemic is behind us. This has led to increased confidence in the economy and a willingness to invest in stocks. Additionally, the Federal Reserve has signaled that it will continue to keep interest rates low for the foreseeable future. This has made stocks a more attractive investment option, as investors seek higher returns than they can get from bonds or other fixed-income securities. Finally, there's the fact that many companies have adapted to the pandemic and found ways to thrive in the new normal. Tech companies, in particular, have seen a surge in demand as more people work from home and rely on digital services. All of these factors have contributed to the recent uptrend in the stock market, with the Nasdaq 100 leading the way. The index, which is heavily weighted towards tech stocks, has blown past the 13,000 resistance level and shows no signs of slowing down. Of course, it's important to remember that the market can be unpredictable, and there are always risks involved with investing. However, for those who are willing to take on some risk, the current uptrend presents an opportunity to potentially earn strong returns. So, if you're thinking about investing in the stock market, remember: don't fight the tape. Follow the current trend and invest wisely, and you may be able to reap the rewards of a resurgent market.