Bearish traders can prepare for a possible decline in the Nasdaq-100 with the ProShares UltraShort QQQ (NYSEARCA: QID). QID attempts to provide double the daily inverse returns of the Nasdaq-100 Index.
“One and two weeks after both signals, the NDX was in the red. On average, the index was down 1.42% one week later. So far this week, the Nasdaq-100 is down 0.5%. Two weeks after the signals, the NDX was down 1.39%, on average. For comparison, the tech-rich index has averaged anytime one- and two-week gains of 0.14% and 0.27%, respectively, since 2000, with win rates above 50%,” according to Schaeffer’s.
Over the past 90 days, investors have added about $908 million to QQQ, good for the best inflows tally among all PowerShares ETFs.
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Tom Lydon’s clients own shares of QQQ, Apple, Facebook and Microsoft.