QQQ : A TRADE YOU MUST TAKE

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  US Indices
QQQ

PowerShares QQQ, formerly known as "QQQ" or the "NASDAQ- 100 Index Tracking Stock", is based on the Nasdaq-100 Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually.

29.12.16

 
Following the break into all time highs we have seen this month, December, the Nasdaq seems vulnerable and heavy. The fact that we run higher into yearend, gives doubts regarding "January affect expectations" which normally suppose to be bullish. However the magnitude of the recent run might result in a move in the opposite direction. At this point, we can enter a short trade on the QQQ with little risk (stop above the highs) and set Take Profit targets to $117.0 and $110.50.