Invesco QQQ Trust Series 1 (QQQ)

[Devoid_Lucci]

Buyers are fewer to keep pushing QQQQ higher.

Roy, remember the long discussion we had on this on the Ninja board a year or so ago?

The question was: can buying and selling of QQQQ (the etf) cause the NDX to rise and fall, or do Q prices (and volume) only reflect what's happening in the individual NDX stocks?

At the time, I did the math to find that total typical QQQQ trading accounted for only about 10% of total trading in the NDX stocks themselves. While this is big for any etf (probably the biggest one in the market), the fact remains that it only has 10% influence on what Nasdaq 100 prices do.

I haven't seen anything regarding QQQQ trading since then that makes me think it has become more influential than it was a year ago.

So my basic point remains. The QQQQ reflects/measures what's happening in the NDX. It does not cause the NDX to rise or fall.

To expand this idea then, QQQQ volume does not "push" prices higher. Rather, QQQQ prices (and volume?) are "sucked up" by buying in the Nasdaq 100 stocks. (Um...I think.)

Again, I see these as "90% true" statements, not absolutes. I'm sure there are days when Q volume represents a higher percentage of the NDX market and could have a bigger influence on the index.