QQQ as of 12/30/2020 @ 0945 EST

NASDAQ:QQQ   Invesco QQQ Trust, Series 1
QQQ is currently hovering around it's all time high established on Dec 08, 2020. There are several factors at play (in no particular order):

1. Congress is negotiating a potential increase to the previously approved stimulus plan, to provide $2000 weekly checks instead of the agreed upon $600. The GOP controlled Senate is pushing back against the Dem led House and Trump, the latter of which surprisingly supports the increase. However, it is unlikely that this will be approved by the GOP Senate.

2. The COVID vaccine continues to be rolled out, but the news is at times mixed. There has been some negative reactions to the vaccine. In addition, mutations of COVID are being discovered.

3. There is a supposed rotation out of tech to small-cap and the performance of small-cap ( S&P 600 small cap OR Russell 2000) have seen outsized performance since the rotation began. This suggests that smaller companies will prevail in the coming recovery, when lockdown eventually ends. It also remains to be seen how tech will perform after the pandemic and how day to day life changes with respect to reliance on these technologies.

4. The top holding in QQQ is Apple , representing 13.39% of the fund. Apple has had some positive news recently.

5. The Georgia senate run-off is a race between a GOP or Dem controlled senate. There are two seats in the run-off and the Dems need both to achieve 50 votes; with a Dem VP, the tie-breaker votes will go to the Dems. However, it is still all unclear how this factors into the market. Investors may prefer a GOP led Senate as this likely eliminates the potential for Progressives in the Dem wing to push for radical changes in government spending and taxes.

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