Technicals | 10:30 AM
After Nasdaq's rally stalled briefly, the index looks set to resume its up-trending momentum, Fairmont Equities' Michael Gable suggests.
By Michael Gable
The Australian share market has had another poor week and sits at levels which were first achieved in July 2025.
Apart from a local rate rise from the RBA, which was anticipated, the fear remains that US bond yields will continue to rise.
The likely path from here is a form of financial repression where the US tries to control the short-term yields, probably by using US dollars to get the rates down to a level under inflation, and then inflate their way out of debt.
Commentary from President Trump in the past few days about his love of inflation just adds to comments earlier in the year about wanting to “grow” their way out of inflation.
Combine that with the announcement of paying US$5000 to citizens if they win the mid-term elections and we can only once again see path from here where the US dollar is devalued lower and hard asset prices will head higher.
So, while the US dollar has been in a tear since late-August and has been rallying hard on higher yields, and that has caused a pull-back in a range of assets, we believe it won’t last.
Already we are seeing rebounds in some other areas of the market which are sensitive to rates and the US dollar.
Today, we offer a technical view on the Nasdaq Composite Index (NDX).
We recently looked at the Nasdaq on 22 September and noted that “the index should rally once more from here. It might stall very briefly at current levels but it should push to new highs and trend strongly again”.
After trading sideways for several days, we can now see some follow-through on the index with the Nasdaq breaking to new highs.
Therefore, the index still looks positive and we expect the Nasdaq to continue higher from here.
Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
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Disclaimer
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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