Score 9.8 (out of 10): INVESCO QQQ sets up for +6% rally in 2 months

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What’s Going On Here?

Some investors continue to bet against tech stocks. Short Interest in the QQQ tech ETF has climbed for 7 consecutive days while others leveraged. inverse ETFs have also seen inflows. But are these investor wrong sided after the recent correction?

Why Now?

INVESCO QQQ TRUST has triggered a new high volatility signal (3 month). During similar occasions, INVESCO QQQ TRUST shares had a median return of +6%, over the following 2 months – based on 10 historical occasions with 10 of those showing positive returns (100%). This buy signal for INVESCO QQQ TRUST received a high score of 8.6 (out of 10). This insight was generated on 2022-February-3 with last price of 355.

What’s This Company About?

INVESCO QQQ TRUST is in the Sector Fund-Technology business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: QQQ US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 374.68 (+6%) has been reached. Based on INVESCO QQQ TRUST’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 351.05 (last price at 353.55), which is equivalent to a -0.7% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

5.7% (May- 2020), 2% (March-2020), 6.6% (January-2019), 2.3% (November-2018), 6.3% (April-2018), 4.3% (February-2018), 8.5% (August-2017), 0.8% (October-2015), 14.2% (August-2015), 20.4% (December-2014).

Historical Chart:

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Summary:

NameINVESCO QQQ TRUST
ViewUp
Star (1 to 10)9.8
Target+6%
Time2 months
Hit Rate100%

Popular Insights:

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