Trend or Trouble
The next few weeks will be important for markets to see if the Nasdaq 100 falls below its 200-Day Moving Average (DMA), like it did in 2022, which could mean more potential downside. The 200 DMA is a key indicator that shows the index's average closing price over the last 200 days, helping us understand market trends. If the Nasdaq stays above this level, like it did in early 2023, it could mean a more favorable environment.
With our RiskFirst® process, we will continue to monitor these trends closely and are prepared to adjust portfolio exposures when our risk framework models indicate it's prudent.
Trend or Trouble
Source: Bloomberg, Redwood. Data as of 8/8/2024. Date range from 7/20/2020 - 8/8/2024.
Regards,
Allgood Financial
Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.
