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One under-looked sector that will help the Nasdaq rally over 1,748 points

by , 22 June 2021
One under-looked sector that will help the Nasdaq rally over 1,748 points
The Nasdaq just had its fourth winning streak week in a row.

And it's now at an all-time high.

Just so you know, The Nasdaq Composite Index represents some of the largest trillion-dollar companies and is the world's largest electronic stock exchange.

I'm talking about companies like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Tesla (TSLA) and PayPal (PYPL).

But there is an under-looked sector that is helping the Nasdaq rally.

In this article, I'm going to reveal this sector, tell you where I predict the Nasdaq will head and how to profit from the rise.

Let's start…

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Bitcoin has hit a series of new all-time highs already in 2021. Peaking so far over $60K. Its market cap has surged over $1 trillion.
 
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Elon Musk is helping the Nasdaq rally once again
 
Most people know the Nasdaq index is technology driven, as I mentioned above.
 
And one of the main stocks that helped rally the Nasdaq was Tesla.
 
Last week it gained over 2% when CEO Elon Musk tweeted that the electric-car maker could continue bitcoin transactions.
 
His tweet said,
 
"When there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions."
 
This news helped boost the Nasdaq to all-time highs the same day…
 
However, tech isn’t the only catalyst that resulted in the Nasdaq rally.
 
Here’s one under-looked sector that’s helping the Nasdaq rally
 
I’m talking about biotechnology.
 
With the COVID-19 vaccination on a full rollout, few cases and deaths being reported, we are seeing biotech stocks shoot through the roof – taking the Nasdaq price higher.
 
As if that’s not enough, we have also had a few more breakthroughs with biotech companies on the Nasdaq.  
 
Here are a few of the main ones that were in focus for the week:
 
Eli Lilly and Company (LLY) shares have risen 10.2% for biotech stocks.
 
Biogen Inc. (BIIB) shares soared over 38% after the FDA approved its Alzheimer’s drug.
 
A few private-equity firms agreed to a deal to buy Medline Industries Inc. that would value the medical-supply company at more than $30 billion in one of the largest leveraged buyouts since the financial crisis.
 
The IBB biotechnology ETF, which holds stocks such as Biogen and Amgen, has also risen 6% this month.  
 
All these news events with both biotech and tech has sent the Nasdaq to an unprecedented high price, which will attract more investors to send the price up further…
 
Let’s look at the charts…
 
This W Formation is ready to send the Nasdaq up another 1,748 points
 
 
In the daily chart, we can clearly see the Nasdaq has formed a W Formation (one of my breakout patterns).
 
This is a pattern that resembles the letter ‘W’ and has two rounding bottoms (shaded area).
 
The formation started in February 2021 and made its final rounding bottom on 14 June 2021…
 
We then saw the price break up and out of the pattern based on strong news events, I mentioned today.
 
This has led to more demand (buying) which has attracted further buying.
 
The next price target I have for the Nasdaq, is for it to reach a high peak price at 15,896…
 
To calculate this price targer, we’ll take the difference between the high and low price of the W Formation and add it to the high price. 
 
Price target = (High – Low) + High
                   = (14,148 – 12,400) + 14,148
                   = 15,896
 
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FRANCOIS’ NO. 1 DIVIDEND STOCK
 
Chief Income Strategist Francois Joubert is sharing his favourite dividend stock.
 
There are not a lot of companies that make profits in good times and in bad…
 
But what if I told you there’s a business that’s seen increased demand due to the Covid-19 pandemic… And this isn’t just a fluke.
 
Businesses like this one are extremely resilient – and tend to grow their bottom lines no matter the economic situation.
 
In fact, as I write its dividend yield sits at an incredible 10.4% based on its current share price.
 
And when you see why I think its share price has a long way to run up, you’ll quickly see why it’s my #1 Income stock for 2021.
 
Find out why this company is set for a record year - and get the name and ticker symbol - as part of Francois’ FREE Big Income Package
 
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Here’s how I'll profit from the 12.35% Nasdaq rally
 
First, I'll buy (go long) the Nasdaq or (US Tech 100) CFDs and hold it until it reaches the price target. 
 
Second, Trader X will be looking for international stocks to buy when the Nasdaq price rallies. Read more here...
 
Trade well, 
 
Timon Rossolimos,
Chief Strategist, Red Hot Storm Trader 


One under-looked sector that will help the Nasdaq rally over 1,748 points
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