ASDAQ however, delivers a short, powerful rally that starts at the end of June. The accompanying table shows NASDAQ averaging a 2.4% gain since 1985 during the 12-day period from June’s third to last trading day through July’s ninth trading day. This year the rally could begin around the close on June 27 and run until about July 17. In the mid-1980s the market began to evolve into a tech-driven market and control in summer shifted to the outlook for second quarter earnings of technology companies. This 12-day run has been up 24 of the past 32 years. After the bursting of the tech bubble in 2000, NASDAQ’s mid-year rally had a spotty track record from 2002 until 2009 with three appearances and five no-shows in those years. However, it has been quite solid over the last seven years, up six times with a single mild 0.1% loss in 2015. Last year, NASDAQ advanced a whopping 9.6% during the 12-day span.
QQQ could be considered on dips below $135.95 or when its MACD Buy indicator (8,17,9) issues a buy crossover. If purchased, a 2% trailing stop loss is suggested. Update the stop loss using QQQ’s daily closing price. If not stopped out, take profits at $143.50 or on the close on July 17 |
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