$FFTY Forming a VCP (Volatility Contraction Pattern)?

2024年1月17日

FFTY looks to me like it is working on a VCP with volatility shrinking and forming a nice wedging pattern. I like this pattern “IF” or when the market turns positive.

Here are the negative things I see, as of now it is trading below or right at the 18-month AVWAP. It is right at shorter term resistance. It is below the downward sloping wedge trendline. And the RS is still declining.

On the Positive side I see current price is about 11% below the 52-week high. Price is above all the moving averages including the 50 DMA and the 40 Week MA. Price is above the upward sloping wedge trendline.

Here is my trading plan, if the overall market looks good, RS breaks above the trendline and price moves above the 18-month AVWAP I will start with a one-third size position. My stop will be price closing below the 50 DMA. If it breaks out over the wedge downtrend line, I will make it a two-thirds sized position. If it can consolidate without stopping me out, I will build to a full position on any resumption of the uptrend. All TBD.

Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.

FFTY The IBD 50 Innovator Fund is comprised of IBD’s picks for high growth stocks. The stocks represented turnover more often than most ETF’s.

2024年1月24日

ノート

FFTY I have decided not to trade this ETF. The reason is that it only trades on average around 150k shares a day. I try and trade only stocks / ETFs that trade over 750k per day with some minor exceptions. I'll bee looking at the
ARKK ETF and may post something on that soon.