On October 28th my daily article said this:
Considering the bull market of 2024, Cathie Wood’s ARKK fund (she has 6 ETFs) over 2 years and a lot of sideways price action, could now be a potential player.
Remember, ARKK peaked in 2021 at 159.70.
Then ARKK crashed to its trough at 29.43 in 2022.
And while we are still not wowed by the overwhelming underperformance, we do think the fund is worth a look as it takes out the April 2024 highs.
Currently, ARKK outperforms the benchmark SPY.
Momentum has improved, while the price chart is about to have a golden cross.
And even more significant potentially, is that today, ARKK cleared the July 6-month calendar range high (green horizontal line).
The last time ARKK cleared a 6-month calendar range high was in April, when for 2 whole days, it traded above the January range high.
So yes, ARKK needs to prove more.
What must happen next?
ARKK looks okay now, and way better over 54.00.
That is really where the fun begins and where we will get interested in investing.
Currently, ARKK is trading close to $58.00
Now what?
Clearly the recent rally proves 2 things:
- Every dog has its day
- The charts don’t lie
With that said, ARKK is looking parabolic in everything-momentum, price leadership and price. The July 6-month calendar range is in the rear view mirror.
Now we zoom out.
On the weekly chart, ARKK is at resistance going back to 2022.
Now the rubber meets the road.
With weekly momentum and price still under the 200-DMA (green), that is something to watch clear or fail from.
Leadership versus the SPY is also at resistance.
Hence, we would like to see $54.00 hold, and ARKK go on to trade above $64 then $72.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
