What's driving the ARKK breakout?
Well, we finally got some selling. Yesterday, the S&P 500 fell 1.47%, good for its worst loss since late September. We know optimism is running hot, but remember, the best gauge of sentiment is price. And for the most part, the speculative stocks we’re seeing work are breaking out of year-long bases, which means our base case is short-term correction, not end of the party.
Today, we’ll look at a few of those high-risk, high-reward names within the ARKK portfolio, as well as:
Big wedge breakouts
Important moves in the Mag 7
REITs hitting 52-week highs
ARKK holdings breaking out with the ETF
COIN is the #1 holding in ARKK and a chart I’ve featured a few times. In the past month, a large bottoming pattern has been completed and that bottom measures to $195.
PATH is the #2 holding in ARKK and frankly a great-looking chart. After gapping up through two resistance levels in one day, the chart coiled and is moving steadily higher. The risk is well-defined: If we’re above $22, long and strong.
Video game maker Roblox has broken out of a 16-month downtrend in the past week. I think it can run toward $60.
The Tesla chart still doesn’t get me super excited, but it has finally broken through the downtrend line from the July highs. $300 would be a short-term target.