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- The Hedge fund Invesco QQQ Trust is trying to fight the market scenario and upcoming Fed rates.
- Its majority holdings are in tech and performing well, so it might survive the waves.
The current market situation and the fear of the upcoming recession are pushing the Invesco QQQ Trust prices into ambiguity. Technology stocks are somewhat overvalued, with a PE ratio of 25, fearing a supposed recession. The recent banking crisis created bearish sentiments slowing the market down. Now, the reversal market wants a lowering of interest rates.
The federal reserve is now facing a difficult choice: either focus on inflation or keep the monetary policy restrictive until the inflation returns to 2%. Or, they could refocus on the financial stability issue and slacken the monetary policy.
Invesco QQQ Trust – Major Holdings
The major holdings of Invesco QQQ are diversified into various sectors like:
- Technology at 48.61%
- Communication Services at 16.01%
- Consumer Cynical at 15.84%
- Health Care at 6.62%, and
- Consumer Defensive at 6.03%, etc.
While the top five holdings are:
- Microsoft at 12.51%
- Apple at 12.29%
- Amazon at 6.15%
- Nvidia at 5.30% and
- Google at 3.90%
…among others, as the concept goes, QQQ stock price is proportional to the relative volatility in all its holding companies and sectors.
Why invest in Invesco QQQ?
Invesco QQQ greatly helps provide exposure to the largest and among the actively traded stocks at NASDAQ and is considered among the top trusted ETFs in the United States. The main reason behind QQQ’s popularity is its track record and strong past performance.
QQQ provides an investor with an opportunity to gain from the performance of a single institution rather than being exposed to the heat of the broader market. Moreover, QQQ Trust surpassed the S&P500 nine times out of ten in the last ten years.
Invesco QQQ Trust (QQQ) – The number game
When writing, the Invesco QQQ Trust (NASDAQ – QQQ) was training at $310.89 with a slight drop of just 0.37%. Previous close and open were $309.75 and $ 309.32, respectively. The 52-week range was from $254.26 to $371.83. The current price is towards the higher end of the spectrum, which is a good sign.
Net assets accounted for $156.74 billion while yielding 0.73%. Year to Date Daily Total Returns was 16.93%. Invesco QQQ’s market cap was $11.42 billion, and the average volume was 63.94 million shares.
Invesco QQQ Trust (QQQ) – Candle Exploration
An upward bend in the moving average and a positive crossover in the MACD indicate a northward movement. However, to achieve this, it needs to cross the immediate resistance at $320.68396, or it might also bounce back if the Fed’s results are not as expected.
The next Fed report on GDP is expected to come out on March 30, 2023. Suppose the results are unexpected, or some other jolt of bad news hits the market. In that case, QQQ prices might hit the immediate support at $286.24479. It might bounce or drop below that toward the demand zone.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
