Please take a look at the QQQ weekly chart above. It has been 18 weeks with only one significant down week, and although QQQ is overbought and due for a drop, these upward moves can go on for a very long time. Since momentum is still pointed up, selling or going short doesn’t make much sense. Buying here is a little bit risky as well, so it might be best just to hold your current positions (or trim them) and look for future developments hinting at a peak.
Like I’ve been suggesting over the last month, buying QQQ and shorting DIA is a good, low risk pairs trade that I still recommend.
See you next week!
Bigfry's Blog 