Fed Keeps Rates Low | Trading QQQ, ROKU, Ethereum, SHIB-USD, More

On Wednesday, the Fed told us it would begin tapering its asset purchases to the tune of $15 billion per month and would not look to raise interest rates.

In other words? The intensity of asset purchases is toning down from a “10” down to a “9” and low rates will continue for longer — #Lower4Longer.

That should spell good news for tech stocks and interest-rate sensitive assets. As far as they are concerned, let’s look at the QQQ ETF, ROKU on earnings, and a few cryptocurrencies.

QQQ

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As far as the QQQ goes — as well as the Nasdaq and NQ futures — we have a pretty similar situation to the SPX. The asset has been screaming higher and with the Fed now keeping a lid on interest-rate hikes, tech may have some room to run. AMZN isn’t getting killed after disappointing earnings and if it’s ready to run, we could see more upside in this ETF. 

As for the charts, It really wouldn’t be a bad thing to get a reset back to the $283.50 to $383 area. Unless it happens in “one fell swoop,” it will likely break the 8- and 10-day moving averages to get there. 

I’ll be honest, I’m likely a dip-buyer at either measure — the 8/10 day or the $382.50 to $383 level. Below $380 and a bit more selling may take place, but I’m not looking for that big of a dip. Just one to reset the indices before a year-end push. 

ROKU

Click to Enlarge | Chart courtesy of TradingView

Generally speaking, Roku reported a good quarter, but certainly not a blowout quarter even though revenue grew 50% year over year. Still, down 36% from the highs ahead of earnings and it would have seemed like expectations were priced in at these levels. 

Shares should open around the “down 40%” zone, as measured from the highs. That’s where I love to begin accumulating high-quality growth stocks, just for the record.

As for trading it through, here’s my thought.