Too Much Love for QQQ
June 08, 2018
The FANG stocks have been leading the market higher in 2018, and a lot of traders are choosing to tag along on that trade by buying into QQQ, the ETF which tracks the Nasdaq 100 Index (NDX). As more traders buy into QQQ, the sponsoring firm (Powershares, part of Invesco) issues more shares in order to keep the share price as close as possible to the net asset value.
This week’s chart shows how the number of QQQ shares outstanding varies over time. Not surprisingly, it goes up and down in sympathy with price movements. There is nothing like an uptrend to get traders wanting to buy. By the same token, there is nothing like a selloff to get them to want to bail out.
https://www.mcoscill...h_love_for_qqq/
http://stockcharts.c...r=1528654488283
Edited by robo, 10 June 2018 - 01:15 PM.