The Nasdaq 100 Index (NDX) is a basket of 100 of the largest public companies listed and traded on the Nasdaq National Market (which is part of the Nasdaq stock market). The QQQQ (old name QQQ and commonly called as qubes) is ETF (Exchange Traded Fund) that tracks the NASDAQ 100 Index. The NASDAQ Stock Market is based on market capitalization of the 100 of the largest domestic and international non-financial companies, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. The NASDAQ 100 index was lunched in January 1985. The QQQQ started to trade since March 10, 1999.The QQQQ is also known as "Qubes" which was previously traded on the Amex stock exchange under the QQQ symbol. On December 1, 2004, QQQ was moved to the NASDAQ Stock Market Exchange and was assigned a new ticket: QQQQ.Basically, QQQQ is designed to follow the performance of the NASDAQ 100 Index. However, QQQQ does not always match the performance of the NASDAQ 100 Index. At the current moment QQQQ stock is one of the most actively traded stocks on the market. There are several aspects that attract investors and speculators to this trading vehicle:First of all, the same as the stock, the QQQQ shares could be bought using a margin and could be sold short - a trader can use them to trade Bull and Bear markets. Secondly, since the QQQQ attempts to correspond the NASDAQ 100 index trend, it gives stock market investors the great ability to diversify the personal portfolio between 100 companies by buying a single stock.The third point is that the QQQQ stock is one of the most active stocks on the U.S. market and due to its great liquidity it gives the ability to easily open and close the positions any time during the trading hours.Another important point is that the options on the QQQQ stock are also available and are traded on the Chicago Board Exchange.Since the QQQQ tracks the NASDAQ 100 index, it's evident that the index technical analysis must be included into the QQQQ analysis and any trading system or trading strategy designed to trade QQQQ or QQQQ options should be mainly based on the NASDAQ 100 technical indicators and charts.
By: Viktor Ka
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