Stocks quoted in this article:
If you track activity on the Nasdaq-100 Trust (QQQ – 70-9/16) as we do, yesterday may have been a major disappointment in terms of excitement, due to the lack of volume.
The QQQ approximates 1/40th of the Nasdaq 100 Index (NDX – 2833). The advantage to the QQQ is that it trades exactly like a stock but can be shorted on a downtick. As such, increased trading volume can be indicative of investor fear. Yesterday, the NDX lost over one percent while the QQQ volume came in at a paltry 31.05 million shares.
Already today, with the NDX off just over two percent, volume on the QQQ has already exceeded yesterday's levels. As of 12:30 (just over one-half of the trading day), volume stands at over 34 million shares.