Speaking of the QQQ, which is down 1.7% on the day so far, its big yearly winning streak could be in jeopardy if things continue to deteriorate for tech stocks over the next seven weeks. Here are the annual total returns of the fund over the past eight years:
2016 YTD: +4%
We should note that technology names in general have been punished during the last two sessions, with top QQQ holdings 1) AAPL (10.98%), 2) MSFT (8.38%), 3) AMZN (6.72%), 4) FB (5.46%), 5) GOOG (4.84%) all getting blistered. FB, for example, is trading right around its 200 day moving average for the first time in recent recollection, and hovering on July lows.
Interestingly, XLK (SPDR Technology) has attracted some bargain hunters here with $350 million entering the fund via creation activity and the fund is even more concentrated some of the names we mentioned earlier in the context of QQQ, with top holdings as follows: 1) AAPL (13.74%), 2) MSFT (10.49%), 3) FB (6.83%).
Finally, GDX (Market Vectors Gold Miners) November 27.50 calls traded in good size yesterday (over 170k contracts) on strength in the ETF and Gold itself, but today the fund is getting whacked (down 4% in the early afternoon).
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.