The Qs Don’t Own A Single Bank
SPY and the Nasdaq 100 ETF (QQQ) or Qs as I like to call them…sometimes give me opposite reads. Bullish over here, bearish over there, both at once, and I traded them both. Everybody assumes that can't happen. You get a call setup in SPY, so obviously you've got the same thing in the Qs, because they move together, right? Sometimes the direction's different. The Qs don't own a single bank. Not one. The Nasdaq-100 throws financials out by rule, which means JPMorgan, Bank of America and Wells Fargo are all sitting outside the fund. SPY carries about 14% financials. So on a morning when the banks are ripping and tech is taking a nap, SPY has an engine running that the Qs simply don't have. Those two charts are not going to tell you the same story, and there's nothing mysterious about why. It goes the other way too.