2023-10-20 15:19:09 ET
You have to neutralize positions when stocks are going bad, said Joe Terranova, chief market strategist for Virtus Investment Partners.
He has sold his Invesco QQQ Trust ( NASDAQ: QQQ ) position after the profit and loss was “going the wrong way on this trade and I had to neutralize it.”
In a CNBC interview on Friday, he said he hasn’t turned bearish on the remainder of the year, and that he still believes that the fourth quarter rally will come from technology ( XLK ) and communications services ( XLC ).
“Those are the only sectors that are up, so far, quarter to date,” he said.
Terranova said he bought ( QQQ ) when it was at around the $368 range, after selling out of iShares Biotechnology ETF ( IBB ), Datadog ( DDOG ), Bank of America ( BAC ), Morgan Stanley ( MS ).
He ran into a problem, he said, when “I tried to defend that position at a critical point in the market,” when there was a new dynamic from the Federal Reserve holding their rates for longer.
“I play the Futures market from the long side,” he said, “so, that didn’t work out pretty well.”
More on Invesco QQQ ETF:
- The Nasdaq 100 Faces A Major Breakdown
- The Long Bull Market To Come
- Long QQQ, New Highs Look Imminent (Technical Analysis)
- BofA clients were net buyers of equities for the 11th consecutive week
- Investors were sellers of fund assets for the third week in four
For further details see:
You have to neutralize positions when they’re going bad – Virtus’ CMS