Friday, October 27, 2006

Trade of the Day - NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)

The QQQQs gapped lower on the open following weaker than expected GDP numbers. Shortly after, they started to consolidate and over a period of a few hours, managed to close the gap. The consolidation took the form of a bearish rising wedge. Shortly after 1:00 p.m. EST, the wedge broke and the Qs fell down. I shorted at $42.65 and covered at $42.20.

Between 1:00 and 2:00 ET, it was reported that Goldman Sachs was cutting their growth forecast for motherboard shipments. After the broker reportedly said motherboard demand is "falling off a cliff," tech stocks did just that. Courtesy of

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