Here is look at ARKK showing the imbalance between irrational exuberance and realistic expectations. Much of the excess has been wiped out. If there is to be any recovery in growth names the green box represents the launching pad. Expectations going forward should be in tune with the longer term trend not the abnormal price action of 2020. Some extra context is provided in my previous post.
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Growth perking up now. A short term rally into the 382 fib RT is reasonable at this point. Keeping and eye out for a break from the green box.
Would you enter this trade now that it’s above green box?
WadeYendall
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@dl3286, The post was not meant as a trade, but more of an analysis of the growth sector. That said however ARKK is currently attempting to break out of a base. I personally would like to see it confirm the breakout with a move above the green box and then a successful re-test of the box. One could either trade ARKK, IWO or one of the strong growth names.