Who makes money irrespective of whether traders are winning or losing? Check out Nasdaq Exchange ($NDAQ) (August 07, 2020)
NDAQ NDX--X NDAQ
I want to look at the NDAQ ( NASDAQ: NDAQ ) and this is interesting because the Nasdaq ( INDEXNASDAQ: NDX ) didn’t really do that great on Friday but that’s the index, that’s 100 stocks. This is the actual exchange itself ( NASDAQ: NDAQ ) and it’s doing fine.
When we see trading volume up the way it has been we are not thinking about who is winning and who is losing in their trades. We are thinking about who is making money with all of these trades. One of those would be NDAQ ( NASDAQ: NDAQ ) so here we are. This stock has great fundamentals. The company has great fundamentals, high growth. I don’t want to get into all of that here, but instead, we will just talk about this pattern.
First of all, it qualifies as an uptrend. The 200-day moving average is trending higher. The 50-day moving average is above the 200 and it’s trending higher. The price is above the 50-day moving average AND above the 20-day moving average, which is also trending higher.
Now, the price itself isn’t really trending higher, we like this. Instead, depending on how you are looking at a trend, over the last 10-15 days or so the stock has been drifting sideways. What it has been doing is, it has been allowing the 20-day moving average time to catch up to it, which is typically a pretty good support level for stocks that are trending higher.
I think this gives us a pretty low-risk entry here. You can be buying the stock around 133.00 or so. You can even keep the stop clear down below this level here, 127.00, we will make it 127.35, so you are risking less than 5 percent on buying this stock here.
I think this volatility and the trading volume is going to continue to go. It is supposed to be down during the summer, right? Well, that is obviously not happening because when it gets to our lifestyle these days it’s summer 365 days a year; school is out and we are not doing squat. I would be buying this stock right here on Monday, that’s what I would look for.
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