Always consider hidden risks
Nasdaq 100 Index ETF QQQ: When Tech Generals Becomes the Market
​July 30 2017 ( From TradingView )
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​​Financial assets like the SP500 Index (SPY ETF) had a very good ​
​performance ​indeed ​since bottoming out just before the US Election
​on November 4 2016 (+18.5%) as even ​the Nasdaq 100 Index (QQQ ETF) ​
​joined the party (+26.8%),  ​QQQ ETF is Outperforming the Mighty SPY ETF.
​​QQQ ETF is now near testing the Previous Daily Breakout Trendline.
​​​(See First Chart Below - Uptrend Channel - Red Trendline)​

QQQ ETF is at +11.2% above the 200 DMA ​(Day Moving ​Average) as of the
​close of ​July 28 and SPY ETF is only at +6.4% above it s 200 DMA.​

​​But few of us realize ​the ​Daily outperformance of the Nasdaq ​100 Index​ ​
​(QQQ ETF) ​compare to the Mighty SP500 Index (SPY ETF) on a relative basis since December 9 2016 week after testing a Major Support Trendline that started back since November 2008!. ​
​(See Second Chart Below - Red Trendline)

​​​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 9 2016 and rebounded strongly since then to reach the Major Daily Resistance Trendline on a Relative Basis. ​(See Second Chart Below - Grey Trendline)

What is quite interesting, is to observe the strong concentration within the Nasdsq 100 Index (QQQ ETF).
​As only a few big names makes this index (top 5 AAPL, MSFT, AMZN, FB and GOOG makes 42.11% of the weight on the QQQ) compare to only +11.88% for the SPY ETF (top5 AAPL, MSFT, AMZN, FB, JNJ). Comparing the Relative Performance of the QQQ ETF with its Equal Weighted Index (QQQE ETF) which the top 5 names makes only 5% of the fund is striking.  (See Third Chart Below - Blue Line)

That concentration within the index is already bringing more volatility into the QQQ ETF. On a Relative Basis (daily ratio of Nasdaq100 Index Volatility (VXN) vs SP500 Index Volatility (VIX), we are at level last seen in January 2007!   ​(See Fourth Chart Below - Blue Line)

​W​​e must realize that the last up leg of the market is lead by technology stocks (Mainly the Generals high Capitalization stocks) and we must monitor the risks accordingly within our portfolios. QQQ ETF strong out performance make it Feel When the Tech Generals Becomes the Market.

 Nasdaq 100 Index ETF QQQ: When Tech Generals Becomes the Market $COMPQ  #Trading #nasdaq #investing #sp500  #spy #stocks

Nasdaq 100 Index ETF ( QQQ )
over SP500 Index ETF ( SPY ) 

​NASDAQ 100 Index Volatility (VXN) 

​SP500 Index Volatility (VIX) (Blue Line)

​Daily Chart ( Candles )
Nasdaq100 Index ETF ( QQQ )
20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​​

​Daily RATIO
​NASDAQ100 Equal Weight Index ETF QQQE (Blue Line)