A truly difficult context for American Tech. The Nasdaq 100 has dropped by more than 10% since the beginning of the year, in the wake of the increasingly hawkish declarations of the Fed. The American Central Bank is now solely focused on fighting inflation and this translates into an end of QE and a rise in rates. The market already discounts 5 in the year: a very difficult scenario for American techs. US inflation turned out to be stronger than expected at 7.5%. The index moves back towards the key support at 14,000 points.
The ARK Innovation ETF, after strong performance in 2020, started an equally strong underperformance compared to the sector benchmarks. The picture of weakness seems to persist and the ETF also pierced the Fibonacci retracement of 61.8% of the entire bullish trend which started in March 2020 and which reached the top on February 16, 2021. Recall that the break of 61.8% makes reversal of the main (bullish) trend more likely. It therefore becomes an ETF you can go short on. We have already closed the first short strategy on this ETF with the target taken at $70. We remain bearish on the ETF and the rebound movement after the low of $64 for now looks more like a pull-back phase.
We recommend going SHORT on the ETF by buying the Leverage Shares Short -3X ARK Innovation ETF (ISIN: XS2399368906), with an increase in returns towards $80, for short term target again towards $70 and $64. Alert/stop loss should be above $82.
The information provided by Websim, a division of Intermonte SIM, a company authorised by CONSOB to provide investment services and registered in the Italian SIM under no. 246, are obtained from sources deemed reliable (of which the company is not able to guarantee the absolute completeness and accuracy) and in any case, if there are doubts about their reliability, this will be clearly indicated. The main purpose of the site is to provide a set of updated and accurate information, studies and analyses in compliance with the provisions of the “recommendations” in current legislation and does not represent a “solicitation to invest” pursuant to art. 1, paragraph 1, lett. t) of Legislative Decree 58/1998.
Sandeep joined Leverage Shares in September 2020. He leads research on existing and new product lines, asset classes, and strategies, with special emphasis on analysis of recent events and developments.
Sandeep has longstanding experience with financial markets. Starting with a Chicago-based hedge fund as a financial engineer, his career has spanned a variety of domains and organizations over a course of 8 years – from Barclays Capital’s Prime Services Division to (most recently) Nasdaq’s Index Research Team.
Sandeep holds an M.S. in Finance as well as an MBA from Illinois Institute of Technology Chicago.
Violeta joined Leverage Shares in September 2022. She is responsible for conducting technical analysis, macro and equity research, providing valuable insights to help shape investment strategies for clients.
Prior to joining LS, Violeta worked at several high-profile investment firms in Australia, such as Tollhurst and Morgans Financial where she spent the past 12 years of her career.
Violeta is a certified market technician from the Australian Technical Analysts Association and holds a Post Graduate Diploma of Applied Finance and Investment from Kaplan Professional (FINSIA), Australia, where she was a lecturer for a number of years.
Julian joined Leverage Shares in 2018 as part of the company’s premier expansion in Eastern Europe. He is responsible for web content and raising brand awareness.
Julian has been academically involved with economics, psychology, sociology, European politics & linguistics. He has experience in business development and marketing through business ventures of his own.
For Julian, Leverage Shares is an innovator in the field of finance & fintech, and he always looks forward with excitement to share the next big news with investors in the UK & Europe.
Oktay joined Leverage Shares in late 2019. He is responsible for driving business growth by maintaining key relationships and developing sales activity across English-speaking markets.
He joined LS from UniCredit, where he was a corporate relationship manager for multinationals. His previous experience is in corporate finance and fund administration at firms like IBM Bulgaria and DeGiro / FundShare.
Oktay holds a BA in Finance & Accounting and a post-graduate certificate in Entrepreneurship from Babson College. He is also a CFA charterholder.
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