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 (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]

  1. QQQ:
  2. AAPL:
  3. MSFT:
  4. GOOG:
  5. AMZN:
  6. QCOM:
  7. INTC:
  8. GILD:
  9. CSCO:
  10. FB:
  11. [Image]:

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