Regarding QQQ’s nearly 13.4% weight to the health care sector, most of that is “biotech stocks that have a period of seasonal strength from Dec. 16 to Jan. 22. Average return during the past 20 periods for the biotech sector was 7%,” according to the Globe and Mail. The paper notes there are two major biotech conferences in mid-January that could act as upside catalysts for the sub-sector.
Of course, QQQ’s near- to medium-fortunes will be determined in large part by Apple (NasdaqGM: AAPL), Microsoft (NasdaqGM: MSFT) and Google (NasdaqGM: GOOG), a trio that combines for about 28% of the ETF’s weight.
PowerShares QQQ
Tom Lydon’s clients own shares of QQQ, Amazon, Apple, Google and Microsoft.