QQQ ETF Pops With Techs And Biotechs But Is One Top Stock Too Lofty?

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ETFs tracking the major stock indexes rose on Tuesday in the final trading week of the year, boosting hopes for the fabled Santa Claus rally. Investors cheered positive economic data on home prices and consumer confidence.

SPDR S&P 500 ( SPY ) added 0.2% on the stock market today .

This exchange traded fund, a proxy for the broad U.S. market, continues to trade near all-time highs and is up 3% month to date.

The Nasdaq Composite index was in the spotlight on Tuesday as it pegged a fresh all-time high.

[ibdchart symbol="QQQ" type="daily" size="half" position="leftchart" ]

PowerShares QQQ ( QQQ ) popped more than 1% in morning trade for a record high of 121.52, but closed well off that level.

Its top three stock holdings - Apple ( AAPL ), Microsoft ( MSFT ) and ( AMZN ) - each posted gains.

So did biotech holdings such as Amgen (AMGN), Gilead (GILD) and Biogen (BIIB).

But the standout on Tuesday was Nvidia (NVDA), a top 25 holding and elite IBD 50 stock .

The chipmaker jumped nearly 7%, raising concerns of a potential climax run and overheated buying .

The QQQ ETF tracks the Nasdaq-100 index, composed of the 100 largest nonfinancial stocks listed on the Nasdaq based on market capitalization.

PowerShares DB Commodity (DBC) also punched up 1.5% Tuesday with higher oil and gold prices .

The ETF is up 16.3% year to date through Dec. 23.

IBD'S TAKE: The Nasdaq-100 index has been a relative laggard this year. QQQ, which tracks this index, is up 8.7% year to date through Dec. 23, trailing both the S&P 500 and Russell 2000. However, a PowerShares equity strategist believes that QQQ ETF is well-positioned over the long term , given the earnings growth and valuations of its components.

12 Bellwether ETFs

Here's a look at the performance of major exchange traded funds across key asset classes on the stock market today.

The Relative Price Strength (RS) Rating measures a stock's price performance over the last 12 months vs. all stocks and ETFs, on a scale of 1 to a best-possible 99.

SPDR S&P 500 ( SPY ), +0.2%, RS 57

PowerShares QQQ ( QQQ ), +0.5%, RS 54

SPDR Dow Jones Industrial Average (DIA), +0.1%, RS 65

IShares Core S&P Mid-Cap (IJH), +0.4%, RS 66

IShares Russell 2000 (IWM), +0.4%, RS 72

IShares MSCI EAFE (EFA), -0.1%, RS 38

Vanguard FTSE Emerging Markets (VWO), +0.5%, RS 38

SPDR Gold Shares (GLD), +0.6%, RS 17

United States Oil (USO), +1.5%, RS 59

IShares Core U.S. Aggregate Bond (AGG), -0.1%, RS 30

PowerShares DB U.S.$ Bullish (UUP), 0%, RS 54

IPath S&P 500 VIX Short-Term Futures (VXX), -1.4%, RS 1


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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