ARKK trade ideas
$ARKK Regains all Moving Averages!Looks like $ARKK may be ready for a nice move higher. As you may know ARKK invests in high beta stocks so it can and does move quickly. I show it broke out of a Darvas Box a couple days ago. Today it reclaimed the 200 SMA and all the shorter term moving averages are pointing up and are just under price. This should (TBD) help lift this ETF higher. You can see my entry and stop on the chart. Ideas, not investing / trading advice.
Cathy Wood's flagship ETF, ARKK is now at the point of support Cathy Wood's flagship ETF, ARKK is now at the point of support of $101 - $103. lvl of gathering..
Not financial advice, your trades can go to $0.00. Do your own research!
HYPER GROWTH IS BACK IN TOWN, CATHIE WOOD IS IN THE ROCKET SHIPHyper growth has crashed by over 35%, inflation data is not as bad as everyone thinks, 10 year treasuries have pulled back, commodity prices have dropped massively, lumber has dropped from 1700 to 1100, fed likes to print money BRRRRRRRRR. This is not financial advice and I'm not advertising the buy or sale of ARKK etf or its holdings.
There is an upside We should be heading up from here. Any drops can be bought.
One caution- We are in the fifth wave of Broader Markets and i expect that to end sometime in next few months. If broader markets starts to drop, the fifth wave on this ticker will be truncated at where ever it stands.
Trading Plan for the breakout on ARKK - Statistical ApproachToday, we will explain our trading idea on ARKK.
What are we observing right now? The price is inside a descending Wedge pattern (106 days correction), and we are observing possible signs of a breakout happening soon. We can see a clear support zone that the price could not break, so we expect a bullish movement towards the next resistance zone at least.
How are we planning to trade this movement? We are waiting for 4 daily candlesticks, at least on the edge of the wedge pattern. (Currently 3) After that, we will set pending orders above the structure, and we will wait for a new local high for an execution. The optimal scenario would be to see a retest of the white curve.
Ok, but why did we chose 4 daily candlesticks and not 7 or 9? Good question, smart guy. Let's take a look at the next chart
Here we have defined ALL the corrective patterns that were ABC clear structures with a duration higher than 50 days at All-time highs level. The conclusion is that after we have the first breakout attempt, we observe a 4 to 8 days correction (daily candlesticks on the edge of the broken pattern) and a new local high as an execution level has been working really well to provide Great setups with huge risk rewards ratio. OF COURSE, the setup failed several times, this is a statistical approach to taking setups, and we should be open to a new fail here. However, our approach is taking good bets in terms of Win rate and R/R ratio. (this means taking several setups to start observing an edge)
The risk we are planning to take on this setup is 1% of our setup, move our stop loss to Break-Even on the next resistance zone, and we will look for a 1 : 10 R/R
Thanks for reading!
ARKK at important resistance..!in the past 37 days, ARKK failed to break above the 200 SMA!
The average 5-day Trading volume decreased from 3.16/D billion in March to 795 million/D.
Wait for rejection and confirmation..!
$ARKK meeting resistance at 50&200SMA + march low anchored vwap.title says it all. lovely bear flag forming. targets prev. lows 95-100. playing it via 7/16 $110 puts
ARK DeathCross Plan exit strategy or have PatienceARKK with deathcross happening shorterm It can move to $122 if mkt helps then $133 (Difficult) would be ideal before rolling over.
90-97 is decent bottom zone
Small cap growth still not out of trouble yet. ARKK has become the bell weather for small cap growth so it is a good ETF to track if you have small cap growth names in your portfolio. There has been some recovery in the growth space, but the ARKK charts shows us that growth names are not out of the woods yet. ARKK is still struggling to break above the ema cloud and has not broken the downward trend line. The up trend will not resume until price breaks above the neutral (tan box). In light of this caution in warranted before jumping heavily into the small cap growth space. The best approach is to scale into positions if you want to enter.
ARKK fakeoutARKK INNOVATION ETF failed to break it´s downtrend. We may see some movement to the downside (98-100$) if it stays below 113$ area.
Closing (IRA): ARKK June 18th 87.96 Short Put... for a .26/contract credit.
Comments: In for 1.94/contract (See Post Below); out for .26/contract with 21 days to go. 1.68 ($168) profit per contract. Still have some July on ... .
ARKK INNOVATION ETF (ARKK) • Volumes suggest bottom may be inARKK volumes on 3D and weekly look particularly interesting.
Nice V-shaped signatures suggest significant sell from weak hand into strong ones.
There is however the possibility of a double bottom formation with lows around 94 but overall I think this correction has ended or at least pretty soon.
Invalidation of this idea is trading bellow 90k until get above 100 again.
The 122 is a significant price level to pay attention. It's the resistance that will become support once broken.
ARKK break to 130+ or fall to 90?ARKK seems to be in a massive falling wedge on the daily.
If it can clear 109.60 (21EMA) resistance, I see this running to 116.25 which just so happens to be the 50EMA, 38.2 fib, and the old trend-line support from July 2020.
Clearing this resistance area will break the downtrend and could possibly send this to the 128-130 zone by next month.
If ~116.25 can not be cleared, I will look to short ARKK down to $90
I previously made a post before on why I was overall short-bias on ARKK and Cathie Woods, if playing monthly long calls I strongly suggest you do not size too big!
Good luck, Happy trading!
Opening (IRA): ARKK July 16th 92 Short Put... for a 1.94/contract credit.
Comments: Still pretty weak here with fairly high implied volatility (30-day at 46.7%). Selling the 16 delta strike. 2.15% ROC at max as a function of notional risk; 14.8% annualized.
ARKK will sink more if you wait for a while!Why I think ARKK is in Bearish Trend and will sink more:
1- 39% correction in 61 trading days
2- Trading below 200 EMA
3- Negative money flow since March 2021
Main resistance levels: 109-111-117
Support Level: 97-100
