The Nasdaq-100 PowerShares QQQ (NasdaqGM: QQQ) hasn’t suffered a down week this year and is outperforming the market on strength in the tech sector and top holding Apple (NasdaqGS: AAPL).
Year to date, QQQ is up 22%, compared with a gain of 13.2% for the S&P 500, according to Morningstar.
Apple, which accounts for 18.7% of the portfolio, has rallied 50% so far this year. [Nasdaq-100 ETF Rises on Apple Dividend]
“QQQ began trading in late 1998 and … the tech bubble really ignited in October 1999 – in a span of five months the Nasdaq doubled,” technical analyst Robert Sinn wrote Tuesday. “Although the magnitude of the 1999 move makes the current rally appear tame by comparison, not even during the tech bubble could the QQQ manage to post 13 consecutive weekly gains (the streak ended at 11).”
QQQ is on track for its 13th straight up week.
“While the current rally shares few things in common with late 1999, by my estimation it is just as impressive given its unforeseen nature and the fundamental backdrop from which it began,” Sinn added.
Kimble Charting Solutions points out that the Nasdaq-100 lost 80% of its value between 2000 and 2002 when the bubble popped. It has taken the index a decade to recoup about 50% of the loss.
PowerShares QQQ
