High Risk Short Against Nasdaq 100, Due for a Reality Check?

While the Nasdaq 100 is still up around 8% YTD, signs point to a potential cool-down phase for the index. Here's what's worth watching:

  • Uncertainty around Fed Policy: While the Fed has hinted towards rate cuts, a reversal to interest rate hikes would be detrimental to the market, especially for high-growth tech stocks.
  • Insider Selling: The recent wave of stock sales by billionaires like Jeff Bezos and Mark Zuckerberg could indicate insider concern about a potential correction.
  • AI Hype Cooling Off: The meteoric rise of Nvidia and its AI-related dominance has been a major driver of the bull run. A cooling off period or sector rotation could weigh on the Nasdaq 100.

Let's see how this plays out! :)

As always, not financial advice. DYOR!