ARKK
Strong Support for Cathie Wood's $ARKK (and $TSLA?)A trend line drawn from the pre-pandemic crash high in early 2020 to the current price point gives us a trend line that has acted as support as many as 10 times since July 2020 without failure. This would suggest we are currently sitting on a strong floor and should bounce higher from here. That would be quite bullish for $ARKK and probably its largest holdings, $TSLA $SQ $TDOC and $ROKU.
What can we see on ARKK?Today, we will post a quick view of ARKK
-The main bullish structure is the ascending trendline coming from MARCH 2020
-After a 33% sell-off from the ATH levels, we saw support on the ascending trendline
-From a more close perspective, the descending trendline of the sell-off has been broken, and now we are observing a corrective structure making a throwback to the broken line
-Based on that, if the price reaches the green line, we will consider that the analysis is active, and we expect bullish movements towards the next 2 levels.
-Of course, we can't be sure if this will be a short term bullish movement with a quick end or the beginning of a new bullish impulse that makes New ATH
Thanks for reading!
How Fragile ARKK is?Those who investing in ETFs and Funds, are usually cautious investors!
But the question is how safe ARKK could be for the storm ahead..?
ARKK, rewarded the investors 384% in less than a year, but lost 34% of its value in 13 days!?!?
I believe after breaking its yearly trend line ARKK has a hard path ahead to reach new highs again, specially when Tesla the biggest portion of its portfolio does not perform well!
Since ARKK heavily invested in growth stocks, its worst days has yet to come. Although it could go up to 135-140, but we have to wait and see if there will be a new all time high in coming weeks??.
Money Flow 1h Market Rotation IJS Outperformance Small Cap ValueJust My Market Rotation graph, 1 hour, including extended hours. This is graphing ETF performance divided by SPY, showing relative performance over time.
IJS - iShares S&P Small-Cap 600 Value ETF - Is really outperforming everything. Eventually this has to stop? Dividends are doing well too.
The only other asset class beating it is BTC (not graphed). BTC is the new inflation hedge and doing better than gold (also not graphed)?
ARKK is oversold because of "inflation." Let's see how far it goes.
Basically, these market conditions will persist until yields stop rising.
US stock - ARKK chart update (8-Mar-2021)In US stock market, the index NASDAQ and Russell 2000 having a biggest correction since 2020 Mar.
And most of the new economy stocks dropped more than 20% like TSLA, SQ, PYPL etc....
Many people said ARK investment and Cathie Wood is bad/dead now....
Therefore, I would like to show my ARKK trading plan here.
For ARKK, it dropped more than 50% in only 14 trading days.
The 50MA, 100MA all broken, that's crazy....
However, I see there have some support around $110 - 112. (next support is around $104-$105)
This is the Fib Retracement 0.618 + 150MA support level.
Therefore, I bought few ARKK around $111.5.
Actually, the new economy stocks market still not great now and we don't know is that the correction completed or not....
So I would set my stop loss if ARKK broken the 200MA because it mean the uptrend is ended.
Please consider and control your risk in this hard penny market.
This is not financial advice. Just my point of view.
You're welcome to leave your comment if you want further discussion.
Bearish and Bullish movements of ARKKWhat is ARKK?
ARKK is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund's investment theme of disruptive innovation.
Who Runs it?
Catherine D. Wood (born c. 1955) is the founder, CEO, and CIO of ARK Investment Management LLC (Ark Invest), an investment management firm that managed the largest actively-managed exchange-traded fund in 2020. Wood was named the best stock picker of 2020 by Bloomberg News editor-in-chief emeritus Matthew A. Winkler.
What about the performances?
On this chart, you can see that the overall return of ARKK is outstanding since inception reached a peak of almost 700% in 5 years. The idea of this post is to understand how impulses and corrections happen and the % we can see on each of them.
Since its inception, ARKK has had 3 impulses and 3 corrections. We will consider a correction as a 30% drawdown or higher. Why is this relevant? Because if we are interested in a good situation for buying ARKK, we should ask the question about selling periods and subsequent impulses.
Currently, ARKK is dropping 27%, and the next support zone is at 89.77. If the price reaches that level (that would mean that the market corrects (all of it)), we would be on a 44% Drawdown. From there, we would start thinking about how we can create bullish setups if the conditions are appropriate, and we would never buy a falling knife directly. We want to observe reversal signs before that.
Thanks for reading!