QID, QQQQ

Quote from S2007S:

I dont know how that is possible, this is a very technical question. I just dont see how that is possible where if you place a buy of $10bln on the ask that it would move the nasdaq down. The NDX is made up of 100 stocks and to think that buying that much stock of QID could push the NDX lower is beyond me.
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kha-kha-kha-kha :)
S2007S, have you ever seen Level 2 quotes?
do you know what arbitrade and pair trading is?
do you know and understand that price is just a consensus betwen buyers and sellers? any really serious buyer(s) of QID can push QQQQ and all stocks that part of QQQQ much lower!!!
it's not a technical question, it's just a question of volume balance between buyers/sellers of QID, QQQQ and NQ .
 
Quote from Surdo:

QID enables you to be "synthetically" SHORT in retirement accounts that do not permit shorting.
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Guys, somebody knows how they create such "reverse" ETFs?
How it's technically done that they issue some "stock" QID than has a reverse move of QQQQ? Or double reverse move?

Alex
 
Quote from makloda:

What do you mean? Of course it can push the QQQQ lower since all these instruments (QID, QQQQ, NQ Futures) are arbitraged against the underlying stocks.

If I had $10bln in free cash (=10 times daily QID volume) and kept hitting the ask with 100k lots in the QID (=buying the QID like crazy) you bet it would pull down the UNDERLYING stocks (and hence QQQQ and NQ since they in turn are arbitraged against the underlying Nasdaq 100 stocks) since whoever is arbitraging these instruments will sell me the QID and short the underlying stocks simultaneously.
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You "hit the big" and "lift the offer". Little lingo 101.

Anyways, if some moron decided he wanted to put his billion dollars into QID or QQQQ, the individual stocks would go straight up. It would be so obvious that either someone was mad or a huge programming glitch that everyone would have no problem selling to the guy. He'd buy his billion worth of QID or Q, and it would come right back down to appropriate levels. LAY-UP.

Both are derivatives of the COMP, which is a derivative of a basket of stocks which each have an individual performance, (theoretically, although the COMP pushes stocks down just like stocks push the COMP down..??..?)

What sucks is I believe both trade on the AMEX and AMEX specialists are the scumbags of the universe.
 
"What sucks is I believe both trade on the AMEX and AMEX specialists are the scumbags of the universe."



in the old days the specialists would sell their mothers for an eighth then it was a teenie. now it is a penny
 
Quote from Surdo:

QID enables you to be "synthetically" SHORT in retirement accounts that do not permit shorting.
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just imagine what may happen if another huge stock fail apper, I mean the one like 19 Oct.1987. All those "mutual funds" and other financial organisation that unable to go short due to low restrictions will be able to go short, and buying QID and other reverse ETFs will be the only way to survive for them, cos otherwise they will loose most of their money, so they will buy reverse ETFs like QID like crazy, so it will add additional pressure for stocks to go lower...
see attachment how volume of QID increased comparing to volume of QQQQ
 

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Quote from S2007S:
I dont know how that is possible, this is a very technical question. I just dont see how that is possible where if you place a buy of $10bln on the ask that it would move the nasdaq down. The NDX is made up of 100 stocks and to think that buying that much stock of QID could push the NDX lower is beyond me.
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Think about it, does selling NQ futures affect the price of QQQQ and the underlying stocks? Everything is arbitraged against each other. Thus everything (derivatives + underlying stocks) affects everything.
 
Quote from makloda:

Think about it, does selling NQ futures affect the price of QQQQ and the underlying stocks? Everything is arbitraged against each other. Thus everything (derivatives + underlying stocks) affects everything.
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You are of course, correct. Some of the posts on this thread are painful. neither QQQQ, NQ, QID/QLD or others consistently offer an "advantage" or "lead the other". The IBs, hedge funds and other institutions arbitrage the heck out of them, as they do AMONG things like SPYders or DIAmonds, etc.

Of course, there is underlying values of the stocks making up the index.

But some of the posts here, seriously, are sad...
 
Quote from makloda:

Think about it, does selling NQ futures affect the price of QQQQ and the underlying stocks? Everything is arbitraged against each other. Thus everything (derivatives + underlying stocks) affects everything.
More...

as I said in some previous post it's just a matter of volume between NQ futures, QQQQ and QID buy/sell side. So in case of some serious stock crisis there will be additional volume for reverse ETFs coming from "mutual funds" and other organisation that are prohibited to go short because buying reverse ETF will be the only way for them to survive, so it will just increase price drop IMHO. Just imagine how many billions of $ are in hands of mutual funds, and some serious part of those billions will be put into reverse ETFs in case of crisis...
 
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