ARKK Trading Inside Value Area

The ARKK ETF skyrocketed from pandemic 2020 lows of 33.00 all the way to all-time highs in early 2021 of 159.70. It has since traded all the way back to those 2020 price levels. However, if you are a supporter of the ARKK ETF, then now could be a good time to enter for long term investors. Why? Let us look at the weekly chart dating back to the inception of this fund in 2014. You can see the largest volume profile ledge was established between 46.35 and 35.35. This, in my opinion, is a key value area for this ETF. A doji candle with a long lower shadow also formed on the weekly chart signaling a potential loss of downward momentum. As far as upside resistance, the first major zone appears between 60.50 and 76.57. This zone contains a volume profile ledge, the 34 EMA wave, a symmetrical Fib retracement, and the 50 WMA. There are a couple of ways to play this ETF.

You could enter inside this 46.35-35.33 zone with a percentage risk-based stop. You would just enter inside this value area and look to ride out its volatility over a longer-term horizon (5+ years).

Or you could enter inside this 46.35-35.33 zone with a tight stop below the VP ledge around 31.50. You would then look to scale out somewhere inside the first resistance zone between 60.50 and 76.57 while moving a trailing stop on the remainder of your position to break even. If prices were able to break above resistance, then the next resistance target comes into play around 110.75.

For more information on ARKK, you can visit https://etfdb.com/etf/ARKK/#etf-ticker-profile.

XLF Support Zone

XLF has had a great run since bottoming out in March of 2020. It has rallied over 112% since that time. Now there’s a large support zone approaching on the daily chart between 39.20 and 37.91 and on the weekly chart between 38.21 and 35.90. These two zones overlap to create a third zone between 38.21 and 37.91. All three present good opportunities to get long this ETF. What’s in these zones? All contain volume profile clusters, change of polarity (old resistance becoming new support), 34 EMA wave, monthly pivots, and Fib symmetry. Now for the trade.

Aggressive entries would be at the top of the zone on the daily chart. Moderate entries would be in the overlapped zones on the daily and weekly charts. Conservative entries would be in the middle of the zone on the weekly chart.

Stay tuned for more details.

Daily Chart
Weekly Chart

ETF Watch List

Here’s a list of the 27 ETF’s I follow on a weekly basis (as taught by Raghee Horner @ Simpler Trading). The ETF is listed at the top in bold followed below by the top 15 weighted holdings in each one. If green, then it’s bullish. This means the 8 EMA, 13 EMA, 21 EMA, and 34 EMA are positively stacked (i.e. 8 over 13 over 21 over 34). If red, then it’s bearish. This means the 8 EMA, 13 EMA, 21 EMA, and 34 EMA are negatively stacked (i.e. 8 under 13 under 21 under 34). If it’s yellow, then it’s neutral. The EMAs are not stacked either positively or negatively. Finally, the ones that are it italics are trading inside the 34 EMA wave. If you are a long only trader, then it’s best to look for pullback buys when green (look for ones in italics). Avoid the neutral and bearish stocks. If you are a two way trader, then you can also look for pullback sells when red (look for ones in italics). The trend is you friend!

This upcoming week’s observations are listed below (weekly change in brackets):

  • 2 ETF is bullish [+1], 9 are bearish [-3], and 16 are neutral [-4]
  • The most bullish sectors are XOP (16), XLE (13)
  • The most bearish sectors are XHB (10), XLU (9), ARKK (9). ITB (8), XLP (8), XLRE (8)
  • The market has moved more bearish this week with red stocks rising from 21.76% to 25.46%
  • Weekly observations: the top 15 weighted stocks in XOP are green (bullish); this sector remains on fire! XLE closing in fast; lots of indexes, sectors, and stocks are rallying into areas of resistance
  • Weekly Question: will areas of resistance hold and push these rallies back towards lows? or are we on our ways to retest recent highs?
  • Contact me @ taurus.trading.llc@gmail.com if interested in subscribing to daily or weekly updates

ETF Watch List

Here’s a list of the 27 ETF’s I follow on a weekly basis. The ETF is listed at the top in bold followed below by the top 15 weighted holdings in each one. If green, then it’s bullish. This means the 8 EMA, 13 EMA, 21 EMA, and 34 EMA are positively stacked (i.e. 8 over 13 over 21 over 34). If red, then it’s bearish. This means the 8 EMA, 13 EMA, 21 EMA, and 34 EMA are negatively stacked (i.e. 8 under 13 under 21 under 34). If it’s yellow, then it’s neutral. The EMAs are not stacked either positively or negatively. Finally, the ones that are it italics are trading inside the 34 EMA wave. If you are a long only trader, then it’s best to look for pullback buys when green (look for ones in italics). Avoid the neutral and bearish stocks. If you are a two way trader, then you can also look for pullback sells when red (look for ones in italics). The trend is you friend!

This upcoming week’s observations are listed below (weekly change in brackets):

  • 1 ETF is bullish [-2], 6 are bearish [+4], and 20 are neutral [-2]
  • The most bullish sectors are XOP (16), XLE (7), XRT (7)
  • The most bearish sectors are XLU (12), XLI (10), XLB (8)
  • The market has moved more bearish this week with green stocks on this list dropping from 16.67% to 11.57%; red stocks from 18.52% to 21.76%
  • Weekly observation: the top 15 weighted stocks in XOP are green (bullish); this sector is on fire!
  • Weekly Question: Is it time to finally move to selling pullbacks in weak stocks?

ETF Watch List

Here’s a list of the 27 ETF’s I follow on a weekly basis. The ETF is listed at the top in bold followed below by the top 15 weighted holdings in each one. If green, then it’s bullish. This means the 8 EMA, 13 EMA, 21 EMA, and 34 EMA are positively stacked (i.e. 8 over 13 over 21 over 34). If red, then it’s bearish. This means the 8 EMA, 13 EMA, 21 EMA, and 34 EMA are negatively stacked (i.e. 8 under 13 under 21 under 34). If it’s yellow, then it’s neutral. The EMAs are not stacked either positively or negatively. Finally, the ones that are it italics are trading inside the 34 EMA wave. If you are a long only trader, then it’s best to look for pullback buys when green (look for ones in italics). Avoid the neutral and bearish stocks. If you are a two way trader, then you can also look for pullback sells when red (look for ones in italics). The trend is you friend!

This upcoming week’s observations are listed below (weekly change in brackets):

  • 3 ETF’s are bullish [-1], 2 are bearish [0], and 22 are neutral [+1]
  • The most bullish sectors are CLOU (11), XOP (7), SMH (7)
  • The most bearish sectors are XLI (10), XLB (9)
  • The market has moved even more towards neutral this week with green stocks on this list dropping from 30.32% to 16.67%; yellow stocks from 54.86% to 64.81%
  • Will markets go back towards the bullish side or slide further towards the bearish side?