AXS 2X Innovation ETF (TARK) Looks To Break Up From Technical Pattern As Coinbase Continues To Surge Higher
Portfolio Pulse from Melanie Schaffer
The AXS 2X Innovation ETF (TARK) is trading within a symmetrical triangle pattern, influenced by its largest holding, Coinbase (COIN), which has surged 124% since Feb. 7. TARK aims to return 200% of the daily performance of the ARK Innovation ETF (ARKK), which has been supported by the Bitcoin rally. ARKK's other top holdings, Tesla (TSLA) and Roku (ROKU), have underperformed, falling about 30% each since the start of the year. TARK is expected to break from the pattern by March 18, indicating future direction. Bearish traders can consider the AXS Short Innovation Daily ETF (SARK), which inversely tracks ARKK.
March 12, 2024 | 7:34 pm
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NEGATIVE IMPACT
Roku, another top holding of ARKK, has also underperformed this year, falling about 30% since Jan. 2, contributing to ARKK and TARK's challenges.
Roku's underperformance, similar to Tesla's, negatively impacts ARKK's performance and indirectly affects TARK, given ARKK's influence on TARK.
CONFIDENCE 55
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
SARK, which inversely tracks the daily performance of ARKK, offers a bearish play for traders skeptical of ARKK's performance.
Given SARK's inverse relationship with ARKK, bearish trends in ARKK could benefit SARK. However, the mixed performance of ARKK's holdings leads to a cautious bearish outlook.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Tesla, as one of ARKK's top holdings, has underperformed this year, falling about 30% since Jan. 2, impacting ARKK and subsequently TARK.
Tesla's underperformance directly affects ARKK's overall performance due to its significant weight in the ETF, indirectly impacting TARK.
CONFIDENCE 55
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
ARKK is supported by the Bitcoin rally, primarily due to its largest holding, Coinbase. However, its other top holdings, Tesla and Roku, have underperformed.
While Coinbase's rally supports ARKK, the underperformance of Tesla and Roku, its other top holdings, creates a mixed impact, leading to a neutral short-term outlook.
CONFIDENCE 65
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Coinbase's 124% rally since Feb. 7 has supported TARK and ARKK, being the largest holding in ARKK with a 10.91% weight.
Coinbase's significant rally has a direct impact on ARKK and subsequently TARK, due to its substantial weight in ARKK's portfolio. This rally supports the bullish outlook for both ETFs.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
TARK is trading within a symmetrical triangle pattern, influenced by Coinbase's surge. It aims to return 200% of ARKK's daily performance, with a potential break from the pattern by March 18.
TARK's performance is closely tied to ARKK and Coinbase's recent rally. The expected break from the symmetrical triangle pattern by March 18 could indicate a bullish trend, making it relevant and important for investors.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90