A little over a month ago, I wrote about how the big drop in implied volatility (IV) in the NASADQ 100 (QQQ) stocks had set up a short-term sell signal. This proved to be the case as the QQQ has dropped nearly 20% in that time frame.
In a similar manner, however, big spikes in IV also signal short-term buying opportunities. Currently QQQ has reached the point that favors a probabilistic rally over the coming few months. Let’s take a walk through some of the reasons why a move higher may be in the offing.
