Market Volatility Expected as $2.4 Trillion Options Expiration Coincides with Nasdaq 100 Rebalancing - Broadcom (NAS)
The Nasdaq 100 will undergo rebalancing on July 24, with weight reductions for Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta Platforms, and Tesla, while Broadcom, PepsiCo, Costco, Adobe, Cisco Systems, and Netflix will see increased weights. Despite expectations of selling in the rebalanced stocks, the consensus is to buy on any dip. Additionally, $2.4 trillion of options expiration may counter the selling pressure. Investors are advised to understand market mechanics and consider the protection band strategy. In early trading, investors are buying Tesla and Netflix, while American Express is being sold. The momo crowd is buying stocks and oil, while selling gold. Bitcoin is below $30,000.