In One Chart
Why trouble may loom for stock market if Cathie Wood’s ARK Innovation ETF fails to bounce (story Link)
Last Updated: May 5, 2021 at 4:41 p.m. ET First Published: May 5, 2021 at 1:17 p.m. ET
By William Watts
If high-growth funds falter, it could force a test of 3,980-4,000 level for S&P 500 index: Analyst
Link to daily update on chart view of ARKK:
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LOTM – New comment – If the stock market sells off, Treasury ETF’s will go up. (Link to descriptions of all three)
Here are three – They are all on short-term technical buy signals:
I: 3-to-7-year treasury ETF Chart link
II: Seven-to-Ten-year Treasury IEF – Chart Link
III: 20 year plus Treasury – Chart Linked
Key Buy Triggers.
- Price is above 20-day moving average – YES.
- Price is above 50-day moving average – YES.
- 20-day Moving average is above 50-day Moving aver – YES.
Money seems to be rotating into the Commodities and Treasuries (see Above).
The broader market (NY Stock Exchange)is not as weak as NASDAQ 100 (see Below)
Percent of stocks above their 50-day moving averages for NASDAQ 100 ($NDXA50R) and the New York stock listed stocks. ($NYA50R). You can see the broader index is holding up better than the NASDAQ 100 stocks.
Conclusion: Rotate to where the performance is or be ready to dollar cost average into your core positions if they are out of favor and weak. Buy and hold is the least favorable outcome in the market. choose a better risk management process.
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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