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Despite not showing substantial signs of weakness, a number of institutions purchased a considerable number of puts, betting over $2.99 million the QQQ Trust Series is either headed lower or they're unsure and wanted to hedge bullish positions. This could be due to the following two possibilities:
Technology sector weakness:
1. Apple Inc AAPL 0.04%, Microsoft Corp. MSFT 0.09% and Amazon.com Inc AMZN 0.19%
are the top three holdings in the QQQ Trust Series 1, making up 10.94%, 9.70% and 8.38% of its total, respectively. Its largest holdings were mixed on Wednesday with Apple and Microsoft trading lower while shares of Amazon were trading higher.
2. Market turmoil due to a meme stock short squeeze: GameStop Corporation
GME 15.7%and AMC Entertainment Holdings Inc
AMC 19.09%
soared on Wednesday, looking like another larger short squeeze could be on the horizon. When GameStop and AMC skyrocketed in January, major indexes and the QQQ Trust Series fell. Between Jan. 25 and Jan. 29, the QQQ lost 5% of its value before reversing back upwards after most meme stocks plummeted. |
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