It’s Time to Buy Tech’s Breakout

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

It’s Time to Buy Tech’s Breakout

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.

05 13 14 qqq 300x189 Its Time to Buy Techs Breakout
Click to Enlarge

chart key 300x84 Its Time to Buy Techs Breakout[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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