The NASDAQ composite index is currently trading at 5,246.41, as at 19 October 2016. For the year-to-date, the index is up 4.77%, and it is fast approaching the 52-week high trading range. Over the past 1 year, the index has traded in a broad range between 4,210 on the low end and 5,343 on the high end. Evaluating the performance of the NASDAQ composite index over the past 5 days, we can see that there has been a slight improvement of 0.14%. Consider the points gained and lost since Thursday, 13 October 2016:

• Thursday, 13 October 2016 – 0.49% down (-25.69 points)
• Friday, 14 October 2016 – 0.02% up (+0.83 points)
• Monday, 17 October 2016 – 0.27% down (-14.34 points)
• Tuesday, 18 October 2016 – 0.85% up (+44.01 points)
• Wednesday, 19 October 2016 – 0.05% up (+2.58 points)

While the year-to-date appreciation is + 4.77%, the 1-year change is + 6.95%. The average daily trading volume is 429,663,010 over three months. And the average price/earnings ratio for the NASDAQ is 25.1. Companies in the NASDAQ composite index that have performed strongly for the year-to-date include the following:

• Magellan Petroleum (MPET) – up 809.09% for the year-to-date
• Corbus Pharmaceuticals Holdings Inc., (CRBP) – up 369.70% for the year-to-date
• CoLucid Pharmaceuticals Inc., (CLCD)– up 313.26% for the year-to-date

Popular tech stocks have not fared well. Apple, Alphabet, and Facebook have generated lukewarm returns for investors.

• Apple Inc., (APPL)– up 11.27% for the year-to-date
• Alphabet Inc., (GOOGL)– up 4.79% for the year-to-date
• Facebook Inc. (FB) – up 24.32% for the year-to-date

While there are many poor performers on the NASDAQ composite index for the year-to-date, some of the worst performing stocks include the following: Yahoo! down 6.63% for the year-to-date, Electronic Arts down 18.01% for the year-to-date, First Solar down 18.81% for the year-to-date and Microchip Technology down 0.14% for the year-to-date.

How is the NASDAQ Performing against Other Major Indices on Wall Street?

Measuring the year-to-date performance of the NASDAQ composite index and the Dow Jones Industrial Average yields interesting results. For starters, the Dow is a broad measure of the overall strength of the US economy. With the Dow, investments in individual stocks are not possible. The NASDAQ is a regulated market where traders and investors can buy/sell individual company stocks. The Dow comprises 30 companies and that’s why it is known as the Dow 30. The NASDAQ stands for the National Association of Securities Dealers Automated Quotations. 6 years ago the NASDAQ was valued at $3 trillion – the third largest stock exchange by value in the world.

Evaluating the performance of the NASDAQ with moving averages: buy or sell?

What is important to understand about the Dow Jones Industrial Average is that when the Dow is up, the performance of the US economy is up. This invariably means that the NASDAQ will rally accordingly. The volatility on the NASDAQ is an inherent characteristic of this index. It is comprised of many high-risk companies in the technology and pharmaceutical sector which typically have explosive returns or can just as easily swing in the opposite direction. If we look at the moving averages on the NASDAQ 100 index, we can clearly see that trends. For example, the following 5, 10, 20, and 50-day moving averages paint the picture:

• On both the simple and exponential 5-day moving average, the NASDAQ is a sell.
• On both the simple and exponential 10-day moving average, the NASDAQ is a sell.
• On both the simple and exponential 20-day moving average, the NASDAQ is a buy.
• On both the simple and exponential 50-day moving average, the NASDAQ is a buy.

Overall, the general consensus for the NASDAQ composite index is slightly bearish, which makes sense given the possibility of a rate hike on 14 December and the uncertainty around the US presidential election on November 8.