What is ARKK?
ARKK is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund's investment theme of disruptive innovation.
Who Runs it?
Catherine D. Wood (born c. 1955) is the founder, CEO, and CIO of ARK Investment Management LLC (Ark Invest), an investment management firm that managed the largest actively-managed exchange-traded fund in 2020. Wood was named the best stock picker of 2020 by Bloomberg News editor-in-chief emeritus Matthew A. Winkler.
What about the performances?
On this chart, you can see that the overall return of ARKK is outstanding since inception reached a peak of almost 700% in 5 years. The idea of this post is to understand how impulses and corrections happen and the % we can see on each of them.
Since its inception, ARKK has had 3 impulses and 3 corrections. We will consider a correction as a 30% drawdown or higher. Why is this relevant? Because if we are interested in a good situation for buying ARKK, we should ask the question about selling periods and subsequent impulses.
Currently, ARKK is dropping 27%, and the next support zone is at 89.77. If the price reaches that level (that would mean that the market corrects (all of it)), we would be on a 44% Drawdown. From there, we would start thinking about how we can create bullish setups if the conditions are appropriate, and we would never buy a falling knife directly. We want to observe reversal signs before that.
Thanks for reading!
ARKK is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund's investment theme of disruptive innovation.
Who Runs it?
Catherine D. Wood (born c. 1955) is the founder, CEO, and CIO of ARK Investment Management LLC (Ark Invest), an investment management firm that managed the largest actively-managed exchange-traded fund in 2020. Wood was named the best stock picker of 2020 by Bloomberg News editor-in-chief emeritus Matthew A. Winkler.
What about the performances?
On this chart, you can see that the overall return of ARKK is outstanding since inception reached a peak of almost 700% in 5 years. The idea of this post is to understand how impulses and corrections happen and the % we can see on each of them.
Since its inception, ARKK has had 3 impulses and 3 corrections. We will consider a correction as a 30% drawdown or higher. Why is this relevant? Because if we are interested in a good situation for buying ARKK, we should ask the question about selling periods and subsequent impulses.
Currently, ARKK is dropping 27%, and the next support zone is at 89.77. If the price reaches that level (that would mean that the market corrects (all of it)), we would be on a 44% Drawdown. From there, we would start thinking about how we can create bullish setups if the conditions are appropriate, and we would never buy a falling knife directly. We want to observe reversal signs before that.
Thanks for reading!