Tech Run Away Gap

A run away gap move on the positive bellwether tech companies put the NASDAQ and technology related ETF’s straight up.  The formation occurs based on revised company evaluations causing the price to jump to a certain level as the market seeks out a fair value price.   The price in most cases will not retreat to the previous price (prior to the news break) on such positive new.  It will gradually continue higher investors who are wish to partake in the momentum and positive news continue to positions at these higher levels.   Based today’s price action, a good entry point for QQQ is $151.49.   Many will still sit on the side lines but even money managers who did not buy enough of a position before the earnings release, will still have to pick off smaller lots at these higher levels again until there is a level of equalization (value versus reward).   Any sell-offs, assuming the price does not fill the gap between the pre-news high and after news low, is considered a buying opportunity.