Always consider hidden risks
Nasdaq 100 Index ETF QQQ: Runaway Train?
​May 01 2017 ( From TradingView )
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Financial assets like the SP100 Index (OEF ETF) had a very good ​
​performance ​indeed ​since bottoming out just before the US Election
​on November 4 2016 (+14.1%) as even ​the Nasdaq 100 Index (QQQ ETF) ​
​joined the party (+19.9%),  ​QQQ ETF is Outperforming the Mighty OEF ETF.
​​It is now testing the Resistance of an Uptrend ​channel for QQQ ETF and
​Bulls need to break that Trendline of that Channel at all costs to keep the
momentum going.​ 
​(See First Chart Below - Uptrend Channel - Red Trendlines)​

QQQ ETF is at +11.6% above the 200 DMA ​(Day Moving ​Average) as of the
​close of ​April 28 and OEF ETF is only at +6.3% above it s 200 DMA.​

​​But few of us realize ​the ​Weekly outperformance of the Nasdaq ​100 
Index​ ​(QQQ ETF) ​compare to the Mighty SP100 Index (OEF ETF) on a relative basis since December 12 2016 week after testing a Major Support Trendline that started back since November 2008!. ​​(See Second Chart Below - Blue Trendline - Ellipse)

​​​The market is in favor for the technology stocks over the broad stock market indices lately. As history repeat itself, we must be aware that this Support Trendline on a relative basis was the last call for Bulls for the Nasdaq 100 Index as it was tested on December 12 2016 and rebounded strongly since then and broke the previous congestion zone on March 20 2017. 
​ ​(See Second Chart Below - Yellow Trendline)

What is quite interesting, is to observe the strong concentration within the Nasadq 100 Index (QQQ ETF).
​As only a few big names makes this index (top 5 AAPL, MSFT, AMZN, FB and GOOG makes 41.4% of the weight on the QQQ) compare to only +18.0% for the OEF ETF. That concentration within the index could bring eventually more volatility down the road. We did have a Monthly Breakout in February 2017 on the QQQ ETF (broke the Major Resistance Trendline that started back since October 2017). 
​(See Third Chart Below - Top Yellow TrendLine )

What strikes me the most, ​​is at a time were the QQQ ETF is making new highs ever price wise, we do enter the previous Bubbly Zone of the year 2000 on a Relative basis with the SP 100 Index (Monthly Ratio of Nasdaq 100 Index over the SP 100 Index! (See Fourth Chart Below - Yellow Trendline - Ellipse) W​​e must realize that the last up leg of the market is lead by technology stocks and we must monitor the risks accordingly within our portfolios.
​It does Remind me though of a Runaway Train with the performance lately... Be the judge.

Nasdaq 100 Index ETF QQQ: Runaway Train? $COMPQ  #Trading #nasdaq #investing #sp500  #spy #stocks

Weekly RATIO
Nasdaq 100 Index ETF ( QQQ )
over SP100 Index ETF ( OEF ) 
​4 DMA ( Week Moving Average - Yellow Line )​
12 DMA ( Week Moving Average - Red Line )​​
52 DMA ( Week Moving Average - Green Line )​

Monthly RATIO (Candles)
Nasdaq 100 Index (IUXX)
over SP100 Index (OEX)

Daily Chart ( Candles )
Nasdaq 100 Index ETF ( QQQ )
20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​​

​Monthly Chart ( Candles )
Nasdaq 100 Index ETF ( QQQ )