[pasted from fishing] . . . . .The QQQ has some hidden advantages. . . .
For one, you can short on a DOWNTICK. Also, if your portfolio is heavy into internet high-techs, like the long protfolio on the HOME thread is, and we see a huge rally with volatility. . .you can lock in your portfolio's gain quickly and cleanly by shorting the QQQ . . .at least until you have time to cash out or figure out the direction of the market.
In my opinion, the QQQ is a brilliant index stock that has MANY great uses. Another that many may not have thought of is scalping. Think about it, don't you usually know when the high-techs are hot and when they are not? If so, you can go long and short. . .back and forth with the tick and the market sentiment toward high-techs, etc. and daytrade the QQQ for some pretty nice gains, providing the range stays nice and wide like it has since they started it.
But the beauty about QQQ, is that regardless of whether you are daytrading it, or using it as a hedge fund, you can short without regard to the tick. . . and that is just plain convenient.
By the end of the day, arbitrageurs will no doubt play the QQQ back to its fair value, whatever the heck that might be at any given time.
So buying QQQ like a mutual fund is one way to play, but thinking of it as a new TOOL might be more useful.
Rande Is
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