Week 16 Trending Tuesdays
Every Tuesday and Thursday I will write a note on what ETFs are trending in a way that can be traded. That is to say they are starting to trend bullish or starting to trend bearish. This will be using my own models and for my own trading strategy. In that sense, these notes are for information purposes only.
Note that this note does not list all the ETFs that are trending bullish or bearish. It only lists the ones that are either about to break out in either direction or have just done so. In other words, this note is to identify trades that can be executed now.
Summary
The major US markets continue to trend bullish despite all the negative talk by experts and pundits expecting markets to fall given that we are facing a recession. I have also been sucked into that kind of thinking and expectation to some extent and have to remind myself that only price is truth.
Potential Long Trades: DBB
Potential Short Trades: KWEB, SMH
The assessments are in alphabetical order.
ARKK: It is poised for a breakout either to the upside or to the downside. I know that sounds neither here or there. What that means is to watch for the breakout and trade with the direction of the breakout. All the moving averages are huddled together along-with the price. That does mean that there is higher probability of price breaking higher.
DBB: Price trending just went short-term bullish meaning the 10-day crossed over the 20-day moving average. YTD returns are just +3% as January was great and the following months were bad. Candidate for a long trade.
DRIV: The moving averages are huddled together along-with the price. So, there should be a breakout in either direction soon.
EWT: The moving averages are huddles together along-with the price. So, there should be a breakout in either direction soon.
FNGS: Could be rolling over. Watch if the 10-day dips below the 20-day.
KBE: This could be turning short-term bullish with the 10-day crossing over the 20-day moving average. The moving averages are bunched together though. Also, long-term it continues to remain bearish.
KWEB: This turned short-term bearish yesterday and I did go short using put options for a short-term trade. It is not doing well in April so far and for the year also is negative.
PAVE: This turned short-term bearish yesterday. The moving averages are somewhat closely bunched up. So, may be a false indicator for now. I will watch but not pull the trigger yet.
SMH: This turned short-term bearish yesterday. It has been a high-flyer and is up +25% this year so far. April has been weak though. Candidate to go short.
TLT: Looks like it is rolling over. May become a good candidate to short.