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Strategies & Market Trends : Z Best Place to Talk Stocks

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To: Iceberg who wrote (24483)9/22/2000 11:32:42 AM
From: DanZ  Read Replies (2) of 53068
 
QQQ.

Ice,

This is just a guess, but I think you can think of QQQ as a futures contract on the Nasdaq 100. Given this, there are two possible explanations.

The "futures" might be predicting a rally in the Nasdaq 100.

The premium between the Nasdaq 100 cash index and QQQ might have gotten too low, so the QQQ is rallying to catch up with the cash.

I took a quick look at the QQQ in relation to the Nasdaq, and it looks like the QQQ got too low yesterday in relation to the cash index and is just playing catch up. The QQQ might also be signaling a trading rally in the underlying securities.

Dan
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