$ARKK By request for PC Butterfly Check this Butterfly pattern on ARkk Potential big opportunity if price action gives us signal to get long, know what you are looking for in PRZ b4 entry.
Trigger, take profits adn stop all entered
ARKK trade ideas
Target 1: $128 - Slingshot to volume whip bandTarget 1: $128 - Slingshot to volume whip band
Breakdown of 'w' support
Second support line found at ~$100
ARKK/SPY nice bounce off support, due for a relief rallyWe could be about to see a big relief rally in the arkk complex. The narrative of the "reflation" trade is absolutely deafening right now, and been going for over 6 months.
Will ARKK lose 100 tomorrow?I was hoping ARKK had finally found a base late last week give some hope for a rally in small cap growth stocks. That was until Cathy Wood got Musked on Sunday afternoon. Elon's tweets have sent BTCUSD into dump mode leaving the ARK funds exposed through there exposure to GBTC, SI, TSLA, COIN ect. If 100 breaks I would not be surprised to see a flush down to the 80/85 area. The funds and individual holdings have been under short attack recently and this will only put a bigger target on CW back. BTCUSD needs to hold the 42K zone to avoid this fate. Let's see how it plays out.
The Week Ahead: ARKG, ARKK, MJ, ARKQ, GDXJ, IWM/RUT PremiumHere's what's paying for premium sellers as of Friday's close ... .
For those of you not familiar with my general process, my general order of preference is to trade (a) broad market; (b) sector exchange-traded funds; and (c) single name, in that order. If broad market isn't paying, I look at exchange-traded funds, and -- if those aren't paying -- I look at single name. This week, I think that there are opportunities to sell premium in at least sector exchange-traded funds, so I don't feel the need to delve into what single name is paying and haven't bothered to screen single name here.
In any event, I first screen out exchange-traded funds* that do not have a 30-day implied volatility of at least 35%.
Then, I price out what the 45 day at-the-money short straddle is paying as a function of strike price with the notion being that if the short straddle is paying, then most other premium selling setups I undertake will also be paying, whether it be short puts, short strangles, iron condors/flies, or short verticals/credit spreads. Here, my cut-off is generally a risk premium (credit received)/short straddle ratio of greater than 10%.
In light of this, I probably wouldn't bother playing FXI here, even though it has a 30-day implied of 36% and one that is relatively high in the range (at the 63rd percentile) because it just isn't paying enough -- 6.18% as a function of strike price. In comparison, it looks like "The Ark Complex" is paying, even though some expiry availability/liquidity makes the exchange-traded funds in this grouping less than ideal to trade.
Exchange-Traded Funds Screened for Options Liquidity and 30-Day Implied >35%:
ARKG (Genomics) (60 rank/61 30-Day): June 18th (33 Days)** 77 short straddle, 9.20 at the mid price, 11.95% as a function of strike price, 132.2% annualized.
ARKK (Innovation) (52/54): July 2nd (47 Days) 104.5 short straddle, 14.45 at the mid, 13.83% as a function of strike price, 107.4% annualized.
MJ (Cannabis) (<1/42): July 2nd (47 Days) 19.5 short straddle, 2.60 at the mid, 13.33% as a function of strike price, 103.5% annualized.
ARKQ (Robotics) (51/39): June 18th (33 Days)*** 79.34 short straddle, 6.75 at the mid, 8.51% as a function of strike price, 94.1% annualized.
GDXJ (Junior Gold Miners) (7/37): July 2nd (47 Days) 51 short straddle, 5.58 at the mid, 10.94% as a function of strike price, 85.0% annualized.
XME (Metals and Mining) (34/37): July 2nd (47 Days) 45 short straddle, 5.95 at the mid, 13.22% as a function of strike price, 102.7% annualized.
EWZ (Brazil) (14/37): July 2nd (47 Days) 37 short straddle, 3.50 at the mid, 9.56% as a function of strike price, 74.2% annualized.
FXI (China) (63/36): July 2nd (47 Days) 44 short straddle, 2.72 at the mid, 6.18% as a function of strike price, 48.0% annualized.
GDX (Gold Miners) (30/35): July 2nd (47 Days) 38 short straddle, 3.53 at the mid, 9.29% as a function of strike price, 72.1% annualized.
Broad Market Exchange-Traded Funds with 30-Day >20%:
IWM (Russell 2000) (16/27): July 2nd (47 Days) 221 short straddle, 15.68 at the mid, 7.10% as a function of strike price, 55.1% annualized.
QQQ (Nasdaq) (14/24): July 2nd (47 Days) 326 short straddle, 21.18 at the mid, 6.50% as a function of strike price, 50.5% annualized.
* -- For single name, the cut-off is 50% implied or greater; for broad market, 20% or greater. Broad market just tends to be less volatile than sector, which -- in turn -- tends to be less volatile than single name.
** -- There is currently no weekly contract near 45 days' duration, so using the monthly here.
*** -- As with ARKG, there is currently no weekly contract near 45 days, so using the June monthly here.
Should You Investing in Cathie's ARK Invest?I've been receiving some inquiries if now is a good time to invest in Cathie's ARK Invest with the recent drop?
Here's the technical analysis perspective. It's not suggesting any upside yet...
$ARKK Sell off ? CONTINUE? Noah's Ark? Cathy likes to hit the BUY BUY BUY button. flood money into positions.
Does she like to hit the SELL SELL SELL button too?
What do floods do? They flood in AND flood out.
ARKK ETF Big gains in coming monthsARKK ETF is a growth ETF created by Cathie Woods that has grown around 500% since its release in 2015. ARKK ETF stocks are a conglomerate of growth stocks that are identified by the analysts at ARK, the stocks are carefully picked out depending on their ability to produce profits. Since ARK holds a diverse portfolio in a wide range of stocks, it usually follows in the market in terms of price action, if the market is bullish, ARK will most likely be bullish, and vice versa.
I have put together a range of indicators and drawing tools that could help us analyse and even predict the future price movement of the ETF. Using the weekly chart, it is shown that the most recent candlestick has slightly bounced off the 50 MA, which gives us a bullish sentiment on the future price of this asset. P.S note that the most recent candlestick still has 3 days of price action as of the 11th of May, 2021. This means that a lot could change in the candlestick before it is completed.
The next indicator is the Relative Strength Index or the RSI, it is an indicator that helps identify whether the stock is overbought or oversold, this can help determine if a stock is bound to fall or rise in price in the future. We can spot that the RSI indicator is nearing the oversold point meaning that the price could soon start to increase.
The Ichimoku Cloud indicator is still showing a bullish trend and has slightly slowed ever since the price of the ETF dropped remarkably by about half its value at peak.
The asset as of May 11th 2021 is trading at $106.09 per share, the intrinsic value of this asset is said to be $97.6, this means that it is still overpriced and we could see a slight decrease under the line of intrinsic value, which could be a strategic and smart buy point.
There are many more indicators that I have not discussed, but the range of Indicators that I picked from are wide enough to give the reader a good insight of how this asset will trade in the future. Like the post and follow me if you have enjoyed this analysis, much more coming soon.
TraderTH
There is still hope for ARKK and CathieThis is an important week for ARKK and Cathie Wood. Following pre-market doom and capitulation we are seeing a bounce to the long-term support level. Hoping this can resume and break above 111 and maintain support above the 200 EMA. A close below 96 would indicate a further drop.
Short Cathie Woods?ARKK has been steadily selling off since February
Selling volume was extremely above normal for the last few trading days
Also fell through 105 support which seems to have been strong in the past
I honestly see this falling back to the $65 range eventually but for now I would short this to $90 demand zone
If it loses daily demand, I am increasing my short position down to $65 by late June-July
Thank you
Panic sell is just started ..!On February 22th, 2021, I published analysis on ARKK when it was 143.75, those who were fooled with social media propaganda of ARK Invest trashed me so bad in their comments, but I think market teaches them their lessons in the hard way!
On April 29th, 2021 I talked about ARK invest apocalypse!
This time it went down 14.4% in 6 trading days with increased volume, soon it will be between 80-90. Even could go down to 60 in 2021!
This is the art of analysis and not being fooled buy fake YouTubers..!
Those who wrote that comments owe me an apology..!
Opening (IRA): ARKK June 18th 87.96 Short Put... for a 1.94/contract credit.
Notes: 30-day implied at 56% and weak. I don't what the particular reason for the oddball strikes is, but rolling with it. 2.26% ROC at max as a function of notional risk. Generally, will take profit on approaching worthless or take assignment, sell call against if that happens.
ARKKARKK is currently at a major support line, that has always been respected by price. Buyers will enter the market monday morning and cause an uptrend for the rest of the week.
ARKK - Daily with Fib extensions and Waddah Attar Explosion ARKK - Daily with Fib extensions, WAE
Had to chart an ARK fund today, after CNBC treated her so rudely like they do with any guest they don't agree with. If you are a day trader/active investor do yourself a favor and ditch CNBC. They are NOT on your side.
Look at the 3 MA's used, the 8/21EMA and the 200MA, the fund has dropped below all 3. Tread carefully.
Quick review of fib extensions and I am starting to incorporate the WAE (Waddah Attar Explosion) indicator by Lazy Bear. Volume is always something I am looking to increase my knowledge on, and a friend of mine recommended I give this a try.
This indicator shows areas of trend strength, direction, "explosion" line, and a dead zone marker.
Explanation from the indicator developer:
"Various components of the indicator are:
Dead Zone Line: Works as a filter for weak signals. Do not trade when the red or green histogram is below it.
Histograms:
- Red histogram shows the current down trend.
- Green histogram shows the current up trend.
- Sienna line shows the explosion in price up or down.
Signal for ENTER_BUY: All the following conditions must be met.
- Green histo is raising.
- Green histo above Explosion line.
- Explosion line raising.
- Both green histo and Explosion line above DeadZone line.
Signal for EXIT_BUY: Exit when green histo crosses below Explosion line.
Signal for ENTER_SELL: All the following conditions must be met.
- Red histo is raising.
- Red histo above Explosion line.
- Explosion line raising.
- Both red histo and Explosion line above DeadZone line.
Signal for EXIT_SELL: Exit when red histo crosses below Explosion line. "
ARKK To FLY ARKK is into the consolidation phase due to sector rotation, long-term potential after the triple bottom is huge on long term.
is this the beginning of the big unwind many predicted for arkk?losing support after support. Lots of ppl say this could trigger big melt down due to the auto-correlation of the funds.
RSI broke down.
selling volume accelerates.
fund flows trend has definitely changed
etfdb.com
Buy the dipTrading signal
The signals suggest that the ETF is oversold. It should start to appreciate in price over the coming week. Time to add to your position or to add the ETF to your portfolio.
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Please note, this idea is shared for educational and discussion purposes only and should not result in speculative investment decisions in any asset class.
