A massive trading opportunity is brewing in QQQ that most investors don't even know exists. When NASDAQ realizes they're breaking their own rebalancing rules, the chaos will separate prepared traders from everyone else.
The eight largest stocks in QQQ - Microsoft, Nvidia, Apple, Amazon, Google, Meta, Broadcom, and Tesla - now make up almost 67% of the fund. That's not diversified. That's eight companies running the show.
QQQ is sitting on a rebalancing time bomb. There's a rule that stocks weighing more than 4.5% cannot collectively weigh more than 48% of QQQ. Right now, stocks over 4.5% are sitting at 54% - and that's not even including both Google share classes. Add those in and you're at 62%.
When this special rebalance hits - and it's coming soon - there's going to be massive forced selling of the biggest names and massive buying pressure on everything else.
The last time we saw a major rebalance like this, one trade increased my account by 10%.
My entire account.
Once the rebalance is officially announced, there won't be much time to position yourself. And the best way to stay informed and ready for that day is by signing up for my free e-letter, Trader's Edge.
