. Cathie Wood's ARK Innovation ETF falls to new low for the year, off nearly 35% from recent high - Trade FX, CFD, Stocks, BTC, Indices, Gold & Oil - 1:1000 Leverage & Bonus - CSFX

Cathie Wood’s ARK Innovation ETF falls to new low for the year, off nearly 35% from recent high

Cathie Wood’s ARK Innovation ETF falls to new low for the year, off nearly 35% from recent high

Cathie Wood

Source: CNBC

Cathie Wood’s flagship fund Ark Innovation hit its lowest point of the year on Monday amid further selling in innovation stocks.

Ark Innovation‘s drop of as much as 5% on Monday dragged the “disruptive innovation” ETF below its February low, a level that many investors are watching as a barometer for the larger tech sector.

Ark Innovation is now nearly 35% off its most recent high: $159.70 on Feb. 16.

Wood’s core ETF is now down nearly 13% this month and more than 15% year-to-date.

Some of Ark Innovation’s top holdings took big hits on Monday as the Nasdaq Composite dropped as much as 1.5%. Tesla fell 4% and Teladoc Health dropped 4.6%. Square and Roku fell nearly 6% and 3%, respectively. DraftKings declined more than 3% and Zillow lost over 2%.

Wood told CNBC on Friday that she loves the set-up for her ETFs following the most recent sell-off in technology stocks. She said she envisions her strategies posting a compound annual rate of return between 25% and 30%.

“I love this set-up,” Wood said Friday on CNBC’s “Closing Bell.” “The worst thing that could have happened to us is to have the market narrowly focus on just our ilk of stock — the innovation space.”

However, more than $1.1 billion of fund flows have left Ark Innovation this month. Ark Invest — including its five core ETFs — has lost about nearly $2 billion in investor dollars in May, according to FactSet.

200-day moving average long gone

Ark Innovation broke below its 200-day moving average, a key technical level watched by traders that is essentially the average of the past 200 closing prices.

“The issue with ARKK and other speculative growth ETFs is that short-term rallies have been aggressively faded for three months now,” Frank Cappelleri, Instinet executive director, told CNBC. “The ETF will have to do more than just bounce for a few days to convince traders otherwise.”

“In other words, simply getting back above the 200-day moving average won’t mean much without upside follow through. That continues to be the biggest concern,” Cappelleri added.

About Author

Related posts

tron crypto

TRON (TRX) Crypto Soars to Top 20 – 21 March 2023

TRON (TRX) Crypto Takes Off Ahead of USDD Launch Tomorrow. In discrepancy to utmost crypto-currencies in recent days, and in particular with Bitcoin, which remains wedged under$,000, the TRON (TRX)

Read More

Leave a Reply