QQQ: The Trade of the Year

by JDH on March 10, 2018

So if you wanted to roll the dice and put all of your money in one trade, right now, what would it be?

QQQ PowerShares QQQ Nasdaq GM

Yup, bet it all on the Nasdaq.


Because we had the big correction (so this was a fantastic buy last month at $150), and on Friday it made a new high, so there is no overhead resistance.  Everyone who owns the Nasdaq owns it at a profit, so there is no burning need to sell to get back to even.

For now, let it ride.

And yes, I realize that the RSI is at 65, and there was a 2% pop on Friday, so it’s likely that there will be a pullback, but if I had to guess, I would guess that we are entering the “blow off top” phase of this crazy market.

In the USA, unemployment is low.  Donald Trump is on track to be the most successful president in the last 50 years.  ISIS is gone, the Middle East is peaceful, amazingly the Saudis are leading the peace charge, and the pressure Trump put on China to bring North Korea into line has virtually eliminated the possibility of nuclear annihilation, at least for today.

That bodes very well for the stock market.

So, back up the truck, and let it ride.

I will keep my core gold holdings, but I plan to have at least 20% of my portfolio in a vehicle like QQQ, so let’s see what happens.

Stay tuned.