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Strategies & Market Trends : trading the QQQ -- Ignore unavailable to you. Want to Upgrade?


To: el paradisio who wrote (603)6/5/2003 2:53:11 PM
From: AlTrades  Read Replies (1) | Respond to of 714
 
Overlay the XLK with the QQQ -- you can barely see the difference, although over the past 52 weeks (5/31/02 to 5/30/03) QQQ is down 0.83% versus XLK down 7.17%. On the other hand XLK trades an average of about 900K shares/day compared to QQQ's 74,548K. Spread on XLK seems to average .04-.05, whereas QQQ's almost always trade with a .01 spread. Unless you have a fundamental outlook that favors technology over other sectors in the QQQ, I think the diversification of the QQQ's is desirable and it's a much more liquid trading vehicle. It would be interesting to develop a set of trading rules and back test both. I'll put that on my "nice to do" list! lol