ARK innovation ETF to 220 in short squeezeFollowing a near 40% correction since the highs of February with ‘incredible buy’ signal (daily chart bottom), it is now time to get bullish. Why?
1) On the above 10-day chart price action breaks out of a pennant formation, this is a bullish development. Support confirmation needed @ $110 area in accordance with the monthly chart.
2) Short interest (links below):
“Short sellers have placed $2.7 billion in bets against Wood's flagship ETF, according to S3 Partners data cited by the Financial Times.”
“In a sign of the growing desire to bet against Wood's fund, Tuttle Capital Management has filed for an inverse ARK ETF that will replicate the opposite of its performance.”
The amount of cash betting against Cathie Wood’s fund is now greater than 10% of the fund itself! Now I have no opinion on the fund / Cathie Wood, but I know for a fact the majority of market participants continually make the wrong call. At this time Puts are way out ahead on Calls.
3) The purple circles. Those show stochastic RSI crossing up 20. Compare with price action above. It has almost been a year since Stochastic RSI crossed down.
Action? A buy from 106 is amazing if you can get it.
Stop loss: $101
Good luck!
WW
Short interest:
fintel.io
markets.businessinsider.com
1-day ‘incredible buy’
