The Case For the QQQ’s

I don’t like to post a lot. It takes time. It takes research and you need something important to say. Thus, I only post when something unusual catches my attention. And something did today:

The $QQQ

For those that don’t know, the $QQQ is the PowerShares QQQ Trust, a “stock” that trades like a regular share, but “imitates” what the NASDAQ- 100 Index is doing. The idea is that the $QQQ will do exactly what that index does. Index up 10%, the $QQQ is supposed to mimic it and usually does very closely.

Well, let’s look at the daily $QQQ today:

QQQD

As you can see, the $QQQ in the daily chart has all of the important features of a stock that is breaking: Trix daily is on the way up, it is pushing the Bollinger Band and it is breaking resistance.

What is neat, is that the weekly chart is as good or as powerful as the daily chart:

QQQW

Again, the $QQQ in the weekly chart is showing a Trix that is turning towards up (not turning yet, but the daily leads it and it is flat), a stock that is breaking and likely the weekly chart also pushing the Bollinger Band in the next few days, or producing a “squeeze” in Bollinger band terms

What is most interesting about this, is that the $QQQ is not a stock, it is an index composed of 100 stocks. And when you think about it, 100 technological stocks and technology stocks have been in the doghouse for a long time.

So, this looks significant, I think.

It does not mean that you have to invest in the $QQQ, you can look at the components and pick your favorite stocks to follow or trade. If I look at the list, $AAPL, $CELG, $AMZN, $NFLX, $ALXN,$BIDU, $YHOO and many others are doing really well. Or you could go nuts and buy one of those nutty indexes like the $TQQQ, triple what the $QQQ does or the $QLD, double what the $QQQ does. Those are too risky, but the sky is the limit if you are aggressive.

The point is that I think the charts are saying that the $QQQ is turning up, looking good and if you had an investment idea in the technology world, it looks like it is time to go for it, the charts suggest so. If you find a component that looks better than this. Please! Let me know! You can make more money with individual stocks.
Good luck and be careful, this is not investment advice, just letting you know something significant is going on!

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