ARKK possibly worth a swing for relief rallyJust tossing this one out there:
Cathie Wood's ARKK Innovation ETF is within 1% of completing a round-trip to its pre-pandemic highs. It's also at the bottom of a fairly major parallel channel that it's been forming since February last year. In purely technical terms, it looks poised for a bounce.
This is not a long-term hold, especially with Tesla as the top holding. Valuations remain high, and Tesla is being investigated by the SEC. I also wouldn't use call options to play this. The options premiums are super expensive. I'm just thinking buy a few shares for a technical bounce, and maybe sell at the 20-day EMA.
Counterintuitively, the Russia-Ukraine crisis is a possible catalyst for a bounce. Forecasters seem to think that conflict in Ukraine will make the Fed more dovish this year, with fewer rate hikes than previously expected. $ARKK has been super sensitive to interest rate expectations, so it might be bullish for the ETF if rate expectations ease a bit.
One nice thing about this trade: since we're so close to channel bottom, you can put a stop loss right beneath the channel.