PowerShares QQQ : Nasdaq 100 (QQQQ)

Company

QQQQ 1-year chart QQQQ 1-year chart

"PowerShares QQQ™ seeks to replicate the NASDAQ-100 Index®, which includes 100 of the largest, most innovative non-financial companies that trade on the NASDAQ Stock Market®. Formerly known as the NASDAQ-100 Index Tracking Stock® or QQQ, PowerShares QQQ™ gained its popularity through investment professionals, private investors and more recently, financial advisors." (company website)

QQQQ 6-month chart
QQQQ 6-month chart

Sell short

5-Dec-08. Bad news on the economic front: jobless claims soared, much higher than expected. Surely this will be another down day on Wall Street. I shorted QQQQ.

  • Percentage price oscillator (PPO) — above signal line due to recent rally
  • Volume — declining gradually since mid-October

Based on technical analysis, MarketEdge calls QQQQ an "avoid" in a "strong downward trend."

Buy to cover

gain Bottom line
-8%

8-Dec-08. All this talk about a massive stimulus plan and a rescue of the Big 3 auto manufacturers has given the markets a lift. In the longer-term I think it will go farther down, but rather than risk an even larger loss, I decided to cover.