Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

QQQ Breaks Away from DIA

by June 5, 2023
June 5, 2023
QQQ Breaks Away from DIA

Trend-momentum strategies that trade stock-based ETFs should require two conditions before considering a position. First, broad market conditions should be bullish. This means being long stocks in bull markets and out of stocks in bear markets. Second, the trend for the ETF should be up. Employing these basic prerequisites can improve performance. Once these two conditions are met, we can begin the ranking process to find the strongest. Let’s look at examples with the Nasdaq 100 ETF (QQQ) and the Dow SPDR (DIA).

First and foremost, we must be in a bull market environment. TrendInvestorPro uses the Composite Breadth Model to determine market conditions and it has been positive since the end of March. This means the environment is favorable for stock-based ETFs. Second, the Trend Composite must be positive, which means the ETF is in an uptrend. Only ETFs in uptrends are eligible to be ranked and considered for positions in a trend-momentum portfolio. For ETFs, the rank indicator of choice is Normalized ROC. The chart below shows QQQ with a positive Trend Composite since February 2nd and Normalized ROC at 5.44.  

Normalized ROC (200,20) tells us the 200-day Dollar gain or loss in ATR(20) terms. QQQ is up $26.41 the last 200 days, ATR(20) is 4.858 and Normalized ROC is 5.44 (26.41/4.858 = 5.44). In contrast to QQQ, the next chart shows DIA with a negative Normalized ROC (-1.1). Clearly, QQQ is leading and DIA is lagging. Also notice that the Trend Composite turned negative for DIA in late May. QQQ is eligible and DIA is not.

TrendInvestorPro recently introduced a strategy using Normalized ROC to trade leading ETFs. This strategy also uses the Composite Breadth Model and Trend Composite, as well as the Exponential Slope to set a momentum minimum. Subscribers get access to a seven part article detailing the strategy and showing performance metrics. Click here for immediate access.

Normalized-ROC, the Trend Composite, ATR Trailing Stop and nine other indicators are part of the TrendInvestorPro Indicator Edge Plugin for StockCharts ACP. Click here to take your analysis process to the next level.

———————————————————-

0
FacebookTwitterGoogle +Pinterest
previous post
If It Weren’t For These 7 Stocks…
next post
DP Trading Room: Shareholders Should Come First

You may also like

MEM TV: S&P Regains Upside Momentum

January 21, 2023

Consumer Staples Stocks Have Broken Key Support –...

May 23, 2023

Small and Mid Caps: Turning Lemons Into Lemonade

November 23, 2024

Equity “Go” Trend Sees Surge in Strength as...

November 11, 2024

Be Ready for the Next Bull Market

November 9, 2022

Week Ahead: Mild Technical Pullbacks Likely; NIFTY Remains...

April 20, 2024

GET IN EARLY! These Tech Stocks Are Just...

June 15, 2024

Week Ahead: NIFTY Stays Significantly Deviated From It’s...

July 13, 2024

Identifying Top Charts with Upside Potential in 2024

July 9, 2024

Sector Spotlight: Energy & Tech’s Opposite Seasonal Rotations

July 31, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025
    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025
    • Three Years of Sounding the Debt Alarm at Cato and on the Debt Dispatch

      August 27, 2025
    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved