Investors Finally Take Profits In Apple And The Technology ETF
“Yesterday, the Nasdaq Composite Index took a noticeable 2.98% loss, which amounted to 74.49 points. Many folks would agree that a pullback was bound to happen and this was really no surprise to anyone. The uncertainty lies within the depth of this correction. Are investors finally ready to take some profits,” Bill Rusnak Reports From MikehavRx.com.
Rusnak goes on to say, “On the technical side, one can see that the most recent upward trend line has been breached on Wednesday, the 28th of April. During the next couple of sessions, the market displayed what Richard D. Wyckoff coined as the hinge pattern, which is labeled in red below. With the bear move yesterday, that pattern was officially broken, which can be a sell signal to many technical traders.”
“If you didn’t catch the move today, you might not be too late. There still seems to be more room for price to move downward until buyers regain control of the momentum. A likely spot for this event to occur could be around NASDAQ 2325. So how does one play this? If you aren’t into trading index futures, another way to short the NASDAQ is to play the inverse exchange-traded funds (ETF), specifically (NYSE:QID), the Proshares Ultra Short QQQQ. When the NASDAQ falls in price, (NYSE:QID) will significantly rise, as it did today with a gain of 6.13%. Keep in mind, though, that this move is a pullback in a larger bull market, so in the case of an unexpected rally, a reasonable stop loss is necessary for a short,” Rusnak Reports.
Today, the PowerShares QQQ (NASDAQ:QQQQ) continued to fall from some continued pressure in Apple which makes up approximately 18% of the ETF.
“Apple shares (NASDAQ:AAPL) continue their downward spiral again today as they are currently off -2.59 (-1.00%) at 256.09. However, since last weeks recent high of $267, Apple stock prices are down 6%. Despite strong sales numbers from the newly released iPad 3G, and from even stronger numbers from the initial iPad Wi-Fi, Apple’s stock price has seemingly done nothing but decline,” Robert Holland Reports From Social Media.
We have put together some more details on the PowerShares QQQ (NASDAQ:QQQQ) and the Proshares Ultra Short QQQQ (NYSE:QID) below:
UltraShort QQQ ProShares (NYSE:QID)
The fund seeks daily investment results, before fees and expenses, that correspond to two times (200%) the inverse of the daily performance of the NASDAQ-100 index. The fund normally invests 80% of assets in financial instruments with economic characteristics that should be inverse to those of the index. It may employ leveraged investment techniques in seeking its investment objective. The fund is nondiversified.
PowerShares QQQ (NASDAQ:QQQQ)
PowerShares Capital Management LLC is passionate about our goal of delivering the highest quality investment management available through one of the more benefit-rich investment vehicles ever created, the exchange-traded fund.
PowerShares QQQ™, formerly known as “QQQ” or the “NASDAQ- 100 Index Tracking Stock®”, is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consists of all of stocks in the 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.
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