Home News The Sneaky “Risk-On” Signal I’m Watching

The Sneaky “Risk-On” Signal I’m Watching

11
0


While the broad markets continue to crash and make lower lows, one interesting pocket of the market may be done selling.

The S&P is off about 30% from its highs, but tech growth names have all been clobbered… 

Think down 70%.

The poster child of this tech bubble has been ARK and Cathie Wood. 

Her funds were on the front page of every investment website through 2021, but it hasn’t been a good ride since then.

However, we could be seeing a turn:

ARKK Chart

ARKK Chart

Notice how the market made a flat retest instead of a lower low like we saw in the Nasdaq or S&P. 

That tells me the deleveraging may soon be over.

A true test of that will be coming up soon. 

We have a huge volume shelf, resistance, and the swing Anchored Volume Weighted Average Price (AVWAP) from the recent highs all coming into play.

If ARKK can manage to move above that, it would signal to me that the worst in tech stock growth land could be over…

And that we need to start looking for “Stage 1” bases to start playing.

If you’re wondering about the indicators I used to analyze ARKK on that chart, and you want to learn how to use them yourself…

Go here.

Original Post Can be Found HERE

Author: Steven Place

Steven Place is the Chief Strategist at Market Traders Daily. MTD helps investors and traders identify high-profit setups through world-class analysis and trade alerts.

Steven has been developing trade systems and risk management techniques for a decade now.

Through the use of a select few option strategies, Steven teaches clients how to build aggressive and sustainable wealth in the options market.

He lives on the Gulf Coast of Florida with his wife and daughter.

Previous articleFX Trends To Watch Out For In July :: InvestMacro
Next articleUSDCHF Double or Triple Zigzag?