“Given that both Apple Inc. (AAPL) and Microsoft (MSFT) report earnings after the close today (AAPL + MSFT = 21% of NDX) the appetite for a reversal is much higher here than in a commodity or currency. By that we mean professionals want earnings to disappoint and some validation that the current narrow leadership in large capitalization technology stocks is a negative signal for the broader markets,” said Rareview Macro Founder Neil Azous in a note out Tuesday. http://rareviewmacro.com/
Azous notes that bullish action by Apple and Microsoft post earnings could rain on the Nasdaq mean-reversion trade, forcing those that put that trade on to once again be long.
QQQ has some other earnings ammunition to throw at those that dare short it: Biotech. Celgene (NasdaqGS: CELG) and Biogen (NasdaqGS: BIIB), QQQ’s third- and fourth-largest healthcare holdings, respectively, report Thursday and Friday. Those stocks combine nearly 4% of QQQ’s weight. The ETF has a 15.6% healthcare weight overall. [An ETF for new Nasdaq Highs]
PowerShares QQQ
Tom Lydon’s clients own shares of Apple, Microsoft and QQQ.