It’s Time to Buy Tech’s Breakout

by Sam Collins | May 13, 2014 1:55 am

PowerShares QQQ (QQQ[1]) — This ETF is designed to track the Nasdaq 100 index, which is comprised of 100 of the largest and most actively traded non-financial securities on the Nasdaq. The Nasdaq 100 is a modified capitalization-weighted index, with more than 25% of its movement the result of its top three holdings: Apple (AAPL[2]), Microsoft (MSFT[3]) and Google (GOOG[4]). Other holdings include Amazon.com (AMZN[5]), Qualcomm (QCOM[6]), Intel (INTC[7]), Gilead Sciences (GILD[8]), Cisco Systems (CSCO[9]) and Facebook (FB[10]).

QQQ broke through the bearish resistance line of a pennant on Monday, and sliced through both its 20-day and 50-day moving averages. Its MACD internal indicator is bullish, and accumulation has been relatively high since mid-April.

Buy QQQ as a trade to $95. Long-term investors could also benefit from purchases at the current price.

QQQ Chart
Click to Enlarge

Chart Key[11]

Endnotes:
  1. QQQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=QQQ
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  4. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  5. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  6. QCOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOM
  7. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  8. GILD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GILD
  9. CSCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSCO
  10. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  11. [Image]: http://investorplace.com/wp-content/uploads/2013/12/chart-key.gif

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