To The Moon

$NASDAQ 100(NDX)$ revise the index's components at least every December, replacing poorer performers with more promising ones.

According to the latest data, $MongoDB Inc.(MDB)$ $DoorDash, Inc.(DASH)$ will be added to the index, while $eBay(EBAY)$ $JD.com(JD)$ $Zoom(ZM)$ will be removed, This is part of the index's annual rebalancing.

• $NASDAQ 100(NDX)$ consists of the largest non-financial companies listed on the Nasdaq stock exchange. There is no minimum market capitalization requirement for stocks to qualify for inclusion, but among other criteria, stocks must have an average daily trading volume of at least 200,000 shares.

• Joining the index can benefit companies by increasing stock trading liquidity, lowering funding costs and increasing visibility.

• Many large index funds that track the Nasdaq 100, such as the $220 billion $Invesco QQQ Trust-ETF(QQQ)$ , are required to hold shares of all companies in the index. Actively managed funds benchmarked against the index must also buy these stocks.

Specifically, the newly added companies include:

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• $CDW Corp(CDW)$, $Coca-Cola Europacific(CCEP)$ ,$DoorDash, Inc.(DASH)$, $MongoDB Inc.(MDB)$, $Roper(ROP)$, $Splunk(SPLK)$

And the removed companies include:

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The best-known company leaving the index is ecommerce company -- and dot-com pioneer -- $eBay(EBAY)$ . A Nasdaq-100 member since 1999, eBay has provided a way for sellers and buyers of everything from cameras to 1880s political memorabilia to find each other.  The shares are basically flat this year and fell nearly 38% in 2022. Its closing peak was $80.59 in 2022. 

Also leaving is $Lucid Group Inc(LCID)$ , which went public in 2021 and joined the index that December. Its deletion was likely because of heavy losses from the extreme challenges electric-vehicle startups are having getting into the market. The shares are off 75% from their 52-week high.

And there's $Zoom(ZM)$ , the internet communications company that kept businesses and, of course, family and friends in touch during the Covid-19 pandemic. Zoom was added in April 2020. 

Also leaving are 

• Chinese e-commerce company $JD.com, Inc.(JDCMF)$

• Orthodontic-devices maker $Align Technology(ALGN)$

• Solar-energy tech company $Enphase Energy(ENPH)$, added to the index just a year ago.

The Impact of Nasdaq100 Index Reconstitution on Stock Prices of Tech Companies

The six stocks being removed on Dec. 17 combined represented just 0.83% of the total market cap.  The above changes will take effect before the market opens on December 18.

The moves will affect index funds, exchange-traded funds and other vehicles built to mimic the index because fund managers have to buy the stocks going in and sell those leaving.

The moves may add a percentage point to the prices of the newcomer stocks. $NASDAQ(.IXIC)$ says that average effect on the upside is 1%, measured from five days before the inclusion is announced until five days afterward. 

Current trend of $NASDAQ 100(NDX)$

Boosted by large technology stocks, the $NASDAQ 100(NDX)$ has risen 47% this year. By comparison, the $S&P 500(.SPX)$ rose 20% and the $DJIA(.DJI)$ gained 9.4%.

$NASDAQ 100(NDX)$ broke resistance level 16000 Likely to rise to resistance level 16500.

Nasdaq-100 index recently under the bullish pressure after the price broke above the round resistance level 16000, which stopped the weekly uptrend earlier this year, as can be seen below. The breakout of the resistance level 16000 accelerated the active intermediate impulse wave (3) . Given the strong uptrend from the start of this year, Nasdaq-100 index can be expected to rise further to the next resistance level 16500 (which started the weekly downtrend at the end of 2021).

@FxProGlobal

Tell me do you have interest in those new additions?