Nasdaq-100 Index Tracking Stock (QQQ)

Company. The Nasdaq-100 Index Tracking Stock is an Exchange Traded Fund (EFT) that tracks the top 100 companies on the Nasdaq stock exchange. An EFT is a basket of securities, similar to a mutual fund, that trades like a stock. Most EFTs trade on the American Stock Exchange (AMEX).

QQQ stock chart
gain Bottom line
4%

Buy. I bought QQQ at the end of March when it seemed possible that the Nasdaq was about to reverse its downward trend. It had recovered from a low of $34 in late March and the directional indicators were about to cross over (+DI over -DI). Also, money flow (CMF) out of QQQ was improving and heading toward the positive.

After getting up to $37.50, the QQQ (reflecting the Nasdaq) fell again, but recovered before it reached the previous low — a good sign.

bird in the hand

Sell. I decided to sell today to lock in my gains of about $1.25 per share. That's not a very big percent because of the high price of QQQ, but in the past I've been perfectly happy to put away $1/share. Besides, it is not clear (to me at least) that the Nasdaq has truly reversed and is headed back up.

Bird in the hand.