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To: Boplicity who wrote (89)	5/2/2001 7:58:23 PM
From: Sully-	Respond to of 13815

Nasdaq-100 Trust (QQQ) at a Critical Juncture 5/2/2001 2:58 PM ET The Nasdaq-100 Trust (QQQ – 49.36) represents a share in the 100 companies that comprise the Nasdaq-100 Index (NDX – 1977.73). The tracking stock is priced to approximate 1/40th of the technology-laden index. The Nasdaq-100 Trust Volatility Index (QQV – 54.73), like its cousin the CBOE Market Volatility Index (VIX – 27.55), serves to represent and illustrate investor fear in the marketplace. For the past two months, the QQV has been oscillating in a wide trading range between the 55 and 70 levels (see the first chart below). When viewed in comparison to the QQQ itself, it appears that, on a short-term basis, speculators would have fared best buying QQQ shares when the QQV was at a pessimistic peak (around 70). Contrarily, short-sellers would have reaped the rewards of a QQQ decline whenever the QQV fell toward the 55 mark (see the second chart below). <Charts at link> The QQV is again sitting around the 55 level, a sign of near-term optimism from the speculative crowd. For its own part, the QQQ is perched near the site of its April 20 high (see the blue line in the chart above), which could offer short-term "double-top" resistance. On the options front, the QQQ is staring up at more than 48,000 open calls at the 50 strike in the front-month series. The combination of these three factors provides a challenging environment for the QQQ. However, a surge above the 50 area could lead to a breakdown of the QQV below the 55 strike. This would then provide more room for short-term advancement from the tracking stock. schaeffersresearch.com Ö¿Ö