So here is everything that you need to know about these special rebalance for the NASDAQ 100 that's set to happen on Open July 24th 2023. What's going on guys, It's Ricky here with Technical Solutions This video will be super short and sweet. Straight to the point and if you have any questions after this video I Always encourage you send me a direct message via Discord which is the first link in the description down below. And yes, it is for free.

You can also send me a direct message via Instagram and that's the third link in the description down below. Friendly reminder. my only account is verified all of the other ones are fake. Let me go ahead and start sharing my screen so you guys can see exactly what is that I'm looking at and I wanted to show you this um overall article that was released by the NASDAQ it says NASDAQ 100 Index special Rebalance to be effective July 24th 2023.

One of the things that I want to keep you guys up to date is one of the main points is the special rebalance of the index will be enacted based off of the index Securities and shares outstanding ending as July 23rd 2023. Pretty much all I'm really going to be paying attention to is in just two days so it should be after this. Friday On July 14th 2023, we should receive a little bit more info on what exactly is going to happen now. I I Took some notes on what it is that I've learned so far and as of right now the NASDAQ 17.5 percent of the top five stocks make up the NASDAQ And this is why the rebalance is going to happen.

So it says based off of a special balance may be conducted to address over concentration in the index by redistributing the weights. The special rebalance will not result in the removal or addition of any Securities so it's not that they're removing the top five and if you're asking, well, what are the top five we have Microsoft Corp Apple Nvidia Amazon Tesla Again, these are ones with huge market cap and there are specific rules that are going to be listed right, No security may wait May exceed 14 of the index I Don't know if you've ever heard this example that I've given, but have you guys ever seen one like Apple stock had that very bullish Green Day for no apparent reason other than hitting the three trillion dollar market cap milestone because I'm sorry I think I said Amazon I meant apple when Apple hit the three trillion dollar market cap. Although it was only Apple the individual stock that had such a significant Green Day Just because of the three trillion dollar market cap, its influence to the overall NASDAQ Market is so significant that it moves overall markets and when the whole NASDAQ moves, it brings everything else with it right? Microsoft makes up 12.67 Apple makes up 12.31 Nvidia 6.97 Amazon 6.73 Tesla 4.41 So again, it's really important to take this into consideration where they have no expectation to remove any of these. Securities They're just going to rebalance the weight of the funds of how the NASDAQ 100 is invested.

which again, it's just something that they have only done twice in history and that's in 1998 and once again in 2011 and then now in 2023.. So the the thing that a lot of people are asking is why is this happening on July 24th, just a few few days before big tech stocks begin to report earnings? Is it because of this criteria being met? Is it because they think that the Market's going to Gap up? Is it because they think that they're going to gap down? You guys let me know down. In the comment section, you guys know that my focus is again not to predict, but to prepare so we will wait and see if the market continues to indicate signs of an uptrend or if it actually begins to pull on back. But one thing everyone continues to say is that there will be a lot of volatility leading up to you and therefore after July 24th.

So again, something to take into consideration. It says the aggregate weight of the Securities with the five largest market cap capitalization will be set to 38.5 meaning that the top five some cannot be more than 38.5 percent and it says no Security with a market cap capitalized capitalization outside of the largest five may have a final index way exceeding the lesser of 4.4 percent or the weight of the security ranked fifth by the market cap. So again, the top five has to be lesser of 4.4 percent. So there as you can tell again just trying to make sure that they rebalance.

The thing that I find so interesting is that this is all just beginning to happen right before big tech stocks are reporting earnings. A lot of you guys should know that Big Tech report earnings by the end of this month and also the F-form cement in which I'm sure probably doesn't have anything to do with the NASDAQ and I'm not being sarcastic I know that kind of sounded uh sarcastic. but if we look at the Federal Reserve.gov website, you guys can see that the Fomc meeting is set to take place on July 26th. So on July 26th we have the Fomc WHERE Again, based off of the Fed rate monitor tool.

There is a 90 probability as of right now that the Federal Reserve is going to raise interest rates. markets usually drop When that happens, the Fed Reserve Again, we'll be announcing that rate hike and that's going to be something that's going to happen on July 26th at 2 p.m And then we also have, uh, overall big Tech earnings uh starting to report if I'm not mistaken by July 28th of 2023. So is it perfect timing or is it something where? again it's just a coincidence, right? You guys let me know down in the comment section once: I Read the file that's actually released on Friday of this week I will make another video and I will keep you guys up to date. So I really do appreciate you guys time.

I Hope that this gave you a better understanding of what's to come and at the end of the day, right? Um, I Think it's going to be very interesting because this has only happened twice in history before and at least we get to experience it. One thing we always say is don't put yourself in a position in which you cannot tolerate and this is just another challenge for that, right? So I really do appreciate you guys this time. I Hope to see you guys for tomorrow's live trading session I Trade live every single morning I'd love to see you there. Click that second link down below and I'll see you tomorrow, right? that market open for that live session I Hope that entered a thumbs up! Don't forget to subscribe, especially if you want updates on this.

NASDAQ rebalance and like always, let's make sure that we're in the year on a green note. Take it easy team.