{"id":20964,"date":"2023-06-07T07:30:03","date_gmt":"2023-06-07T11:30:03","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20964"},"modified":"2023-06-07T07:30:03","modified_gmt":"2023-06-07T11:30:03","slug":"how-cathie-wood-could-catch-a-break","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/how-cathie-wood-could-catch-a-break\/","title":{"rendered":"How Cathie Wood Could Catch a Break"},"content":{"rendered":"

It wasn’t looking good for Cathie Wood at all.<\/p>\n

Since putting in its high of $159 in February 2021, her flagship fund ARKK sold off by as much as 81%.<\/p>\n

Wood and her collection of high-growth ETFs were the darlings of the bull market run that kicked off in late March 2020.<\/p>\n

But bull market heroes are often bear market villains, and that’s certainly been the case for Cathie Wood.<\/p>\n

Back in February 2021, investors.com wrote an article with the headline “ARK’s Cathie Wood Schools Warren Buffet With 3 Top Stocks.”<\/p>\n

Today, the news coverage is very different.<\/p>\n

A recent revelation proved to be quite embarrassing for Wood. It turns out that ARKK got rid of its once-sizeable stake in chipmaking giant Nvidia (NVDA).<\/p>\n

As a result, ARKK missed out on a blistering rally that saw NVDA become just the ninth company to hit a market cap of $1 trillion.<\/p>\n

You would think that such news would be damaging to ARKK’s price. But as I wrote on May 10<\/a>, ARKK was gearing up for a potential bullish breakout.<\/p>\n

When I last wrote about ARKK, the ETF was trading at a price of $37.39. As of last Friday, ARKK was trading as high as $42 and there could be a lot higher to go still.<\/p>\n

Let’s look at an updated price chart of ARKK so I can show you what I mean.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

On May 10, ARKK had a series of important moving averages (MA), the 20-, 50-, and 200-daily, all trading in a very tight range.<\/p>\n

This meant the market was consolidating and getting ready for a big move. If the market were to punch through all three MAs, it would trigger my bullish scenario.<\/p>\n

That’s exactly what happened on May 18.<\/p>\n

Since then, the 20-MA has crossed above the 50- and 200-daily. This is an initial sign that bullish momentum is on the rise.<\/p>\n

The next step is for the 50- and 200-MAs to catch up and also start sloping upwards. If this happens, then the door would be wide open for ARKK to rally to $49.50.<\/p>\n

Good trades are often very difficult ones to execute. For example, think about buying when there’s blood in the streets.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

That’s an emotionally difficult trade for most investors to pull off.<\/p>\n

When the whole world is selling their positions, it’s normal to doubt that things can get better ever again.<\/p>\n

In the case of ARKK, it’s an ETF that I personally don’t care for at all. Cathie Wood did the investment equivalent of throwing a bunch of darts at the high-growth dartboard.<\/p>\n

You could have bought virtually anything from the market bottom in 2020 and done well for yourself.<\/p>\n

That said, ARKK is finally due for a pop.<\/p>\n

I wouldn’t be as confident of hanging on to the ETF in the long run, but as a relatively short-term trade, this has the look of a strong setup.<\/p>\n

Happy trading,<\/p>\n

Imre Gams<\/p>\n

<\/p>\n

\n

READER MAILBAG<\/h2>\n<\/div>\n

Do you have any experience with ARKK or any of Cathie Wood’s other funds?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It wasn\u2019t looking good for Cathie Wood at all.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-20964","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20964"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20964\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20964"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20964"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20964"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20964"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}