When we compare 2 tech-based ETFs which track the NASDAQ it uncovers a major worry percolating beneath the surface of the current advance by tech stocks:
- QQQ – this ETF is powering to fresh 2023 highs following positive earnings news from large caps such as Microsoft (MSFT), Meta Platforms (META US) and Amazon.com (AMZN US).
- QQE – this ETF contains the same stocks as the QQQ but they are equally weighted, and it’s still struggling.
History tells us the QQE is the more accurate forecaster of the two as it is a more accurate gauge of liquidity hence we are comfortable fading the current rally towards our long-term target area.
MM is very cautious towards the current strength of the NASDAQ
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