Cathie Wood-Led ARKK Falls Under Key Bellwether, Reaches Oversold Territory: This ETF Offers A 200% Return On A Bounce
Portfolio Pulse from Melanie Schaffer
ARKK Innovation ETF (NYSE:ARKK) has fallen 15% between Sept. 12 and Tuesday, losing support at the 200-day simple moving average (SMA) on Sept. 21, which could indicate a possible bear cycle. The ETF sold 171,617 shares of Tesla, Inc (NASDAQ:TSLA) between Sept. 19 and Sept. 21. However, a temporary bounce is expected as the stock has entered oversold territory. Investors looking for leveraged long exposure to ARKK can consider the AXS 2x Innovation ETF (NASDAQ:TARK), which aims to return 200% of the daily performance of ARKK.
September 27, 2023 | 3:19 pm
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NEGATIVE IMPACT
ARKK has fallen 15% and entered oversold territory, indicating a possible bear cycle. However, a temporary bounce is expected.
The ETF has fallen significantly and entered oversold territory, which usually indicates a bear cycle. However, the oversold status also suggests a potential bounce back in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
ARKK sold 171,617 shares of Tesla between Sept. 19 and Sept. 21.
The sale of a significant number of Tesla shares by ARKK could indicate a lack of confidence in the stock, potentially impacting its price.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
TARK offers leveraged long exposure to ARKK and aims to return 200% of the daily performance of ARKK.
TARK offers a leveraged option for investors looking to capitalize on ARKK's performance. This could attract more investors to TARK, potentially driving its price up.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80