Always consider hidden risks
Internet Stocks (FDN ETF): Is this a Bubble ?
November 12 (From TradingView )
If you would like to receive our free daily markets updates, please Sign-Up
The Internet Index Fund ( First Trust Dow Jones Internet Index Fund
ETF: FDN ) performance since the beginning of the year is astonishing
with +24.51% compare to the Mighty SP500 Index at only +0.78% and the
Nasdaq ETF QQQ at + 10.35% as of November 11 2015.
The FDN ETF is within a huge uptrend channel that started back on the
week of November 17 2008. Also, we are within a smaller uptrend channel
that started back on May 5 2014 week. ( see 1st chart below - chaanels ).
The three Weekly Previous Peak Prices on the Internet Index Fund FDN near the Resistance of that Main Uptrend Channel was on March 3 2014 week at the 65.79 level, on August 3 2015 week at 73.81 and on November 2 2015 week at 77.09. Closing price on November 11 was 76.35.( see 1st chart below - channel and ellipse ).
According to that, reaching the top of the weekly channel since November 2008 trend looks like a short term bubble ready to bursts. But looking at another technical indicator can change the idea about the FND ETF.
Internet Stocks outperformed since January 19 2015 week the Mighty QQQ ETF ( PowerShares QQQ™, formerly known as "QQQ" or the "NASDAQ- 100 Index ) ( Relative basis FDN over QQQ Ratio ).
But the most interesting technical factor is that the Internet stocks are far from being too expensive compare to the whole Nasdaq 100 Index as shown by the second chart below. Bubble on the first chart and no Bubble on the second chart below: Be the Judge!
Internet Stocks (FDN ETF): Is this a Bubble ? $SPY, $QQQ #trading #internet #qqq #sp500 #stocks #investing
FDN ETF over QQQ ETF
( First Trust Dow Jones Internet Index Fund ETF: FDN )