Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Indices maintain their bullish momentum for 2 consecutive weeks

The month of June had been a positive one for indices in the exchange market. Thus, most of the index family had sustained their bullishness for two consecutive weeks. Cryptocurrency and commodities have been prevalent in their market trend. Indices such as S&P 500 Index, US 100 Index (also known as Nasdaq 100), Volatility S&P 500 Index, Dow Jones Industrial Average, US 30, SPX500, HK50, JP225, FRA40, CHI50, ESP35, IT40, etc., had remained stable and bullish in the last two weeks.

S&P 500 Index is up by 0.35% with the price at $4122 during Asian session; US 100 Index is up by 0.42% at $12599.60; Volatility S&P 500 Index rose by 1.12% priced at $27.08; Dow Jones Industrial Average is up by 0.05% at $32915.80.

The prevailing sentiment towards indices is bullish. Many analysts forecast the possibility of the uptrend likely to continue for the rest of the week. However, buyers must watch for the CPI data to be released this week to determine if the bullishness will continue.

Beginners guide on how to trade Indices

Indices, as we know, are compositions of various stocks put together as one family. Hence, the movement of the high market cap stocks included in a particular index affects their price faster than the smaller ones. Therefore, to trade a given index effectively, the trader must meticulously understand the major stocks making up the index and follow their movements. For instance, Nasdaq 100 comprises the major hundred US technology company stocks. The various stores making up the Nasdaq 100 are usually listed from the largest to the smallest. They are often used as a yardstick to measure the health of the US technology sector. The largest twenty companies making up the Nasdaq 100 are listed below.

20 Prime stocks from the Nasdaq 100 Index

« Apple (NASDAQ: AAPL)
« Microsoft (NASDAQ: MSFT)
« Amazon (NASDAQ: AMZN)
« Tesla (NASDAQ: TSLA)
« Nvidia (NASDAQ: NVDA)
« Alphabet (C shares) (NASDAQ: GOOG)
« Alphabet (A shares) (NASDAQ: GOOGL)
« Meta Platforms (NASDAQ: FB)
« ASML Holding (NASDAQ: ASML)
« Broadcom (NASDAQ: AVGO)
« Costco (NASDAQ: COST)
« PepsiCo (NASDAQ: PEP)
« Cisco Systems (NASDAQ: CSCO)
« Comcast (NASDAQ: CMCSA)
« Intel (NASDAQ: INTC)
« Adobe (NASDAQ: ADBE)
« AstraZeneca (NASDAQ: AZN)
« Advanced Micro Devices (NASDAQ: AMD)
« Qualcomm (NASDAQ: QCOM)
« Texas Instruments (NASDAQ: TXN)

Therefore, to trade this index given above effectively, one must follow the trend in these twenty stocks listed above.

On the other hand, one can trade just one stock alone if one finds it difficult to master these pairs using any of the stocks provided by ATFX brokers. We have also listed other factors that move indices in subsequent publications.

Seven price factors that move Indices 

« News from major composite companies

« Interest rate hikes

« Central bank policies

« Fiscal policies

« Geopolitical events and wars.

« Natural disasters.

« Inflations

Last Updated: 07/06/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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