The just entered its longest bull market ever, rallying for nine years without a 20 percent decline, and that has one trader changing positions on his former bet against big tech.
On Oct. 19, TradingAnalysis.com founder Todd Gordon made a bet that the Nasdaq 100-tracking ETF (QQQ) would fall after hitting a year-to-date high. Since the trade, however, QQQ has actually rallied almost 5 percent.
This as tech giants like Apple, Microsoft, Amazon and Facebook have surged to all-time highs in the last month, with Amazon seeing the biggest one-month jump at 16 percent. Together, all four names make up more than 32 percent of the holdings in QQQ, helping to drive the ETF up to new highs.
Now, Gordon believes QQQ has a bit more to go before hitting the top part of a parallel channel he sees forming in the charts.
"It looks like we are going to be bumping up against resistance in the $158 to $160 region," he said Tuesday on CNBC's "Trading Nation." "That's not to say the market has to stop here, it's that at this point we will designate the market as overbought."
In other words, Gordon believes that QQQ still has up to 3 percent to go in the short term.
QQQ hit another intraday record high Tuesday, and is up 31 percent year to date.