Tesla Charges Higher Towing Cathie Wood's ARKK, This 2X Leverage ETF Higher: How To Play The Move
Portfolio Pulse from Melanie Schaffer
Tesla, Inc. (TSLA) opened over 5% higher on Tuesday, influencing the Ark Innovation ETF (ARKK) and the AXS 2X Innovation ETF (TARK) to gap up over 4% and 8%, respectively. TARK, which seeks to deliver 200% of the daily performance of ARKK, benefited from Tesla's surge due to ARKK's 8.53% Tesla weighting. Technical analysis suggests TARK may encounter resistance at the 200-day SMA, and bearish traders might look for volume decline to anticipate a potential pullback.
November 14, 2023 | 3:48 pm
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POSITIVE IMPACT
ARKK, with an 8.53% weighting in Tesla, gapped up over 4% following Tesla's price movement.
ARKK's performance is partially tied to Tesla's stock movements due to its significant holding, suggesting a positive short-term impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
TARK, designed to return 200% of ARKK's daily performance, started the session up over 8% and may face resistance at the 200-day SMA.
TARK's double-leverage structure means it's highly sensitive to ARKK's movements, which are influenced by Tesla's stock, indicating a strong short-term impact.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Tesla's stock opened over 5% higher, likely influencing related ETFs like ARKK and TARK.
Tesla's significant gap up likely indicates strong investor confidence and could lead to a short-term bullish trend for the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100