Watch Out: The 2024 ETF Rollercoaster is Turning Up the Heat
It’s already a bumpy ride in the ETF world this year. Cathie Wood’s ARK Innovation ETF (ARKK)—the biggest and baddest fund of 2023—has slipped a cool 12.5% as we spoke to the market.
Why ARKK Is Feeling the Chill
- Tesla (TSLA) is dragging down its own share by a whopping 26.4%.
- Coinbase Global (COIN) is taking the plunge with a sad 30.5% drop.
Trading.biz’s Rahul Nambiampurath says the hits on TSLA and COIN aren’t just a light breeze—they’re a full‑blown storm. Weak numbers and even weaker vibes are pulling the rug out from under the ETF’s legs.
“With TSLA carrying a 7.77% weight, and COIN a 8.30% weight in ARKK, we’re looking at a cumulative loss of $473 million in the fund’s value as of 2024,” Rahul explains.
Not Exactly Going Up
Even the rest of the ARKK lineup is under siege. Here’s a quick snapshot of the major players and how they’ve fared so far this year:
- Roku (ROKU) – down 3.2% (weight: 7.70%)
- Zoom Video (ZM) – down 6.1% (weight: 7.42%)
- UiPath (PATH) – down 8.1% (weight: 6.57%)
- Block (SQ) – down 19.3% (weight: 5.97%)
Bottom line? If you thought the 2024 ETF landscape was stable, think again. The market’s tossing chips left and right, and folks are looking for the next safe harbor. Stay tuned for whatever the next twist brings.
ARKK’s technical analysis: What might be ahead?
ARKK’s Price Dive: What’s Really Going On?
Even though ARKK’s share price took a nosedive from close to $55 down to the $46 zone this January, the trading volume didn’t quit—it’s still keeping on rolling like the crew in a cargo ship. That’s a good sign that folks are still interested in what the fund has to offer, even if it’s gone a bit sideways.
Why the Slide Isn’t a Surprise
- Chart Tells the Tale: If you’d been watching ARKK’s chart, you’d see an early pennant pattern breaking out in January. Once that pattern popped, there was nothing that could stop the market from pulling back.
- Price Correction: A “corrective” move is basically the market saying, “Let’s take a breather.” This means the price is resetting after a period of bullish momentum.
- Volume Stays Steady: The steady trading volume suggests that the surge in activity wasn’t a fleeting spike; people are still actively buying and selling.
Rahul’s Insight
Rahul pointed out the pennant break earlier this year. Think of that break as an early alarm: it told investors that the new wave of price activity was heading for a rough ride. He’s right—since January, ARKK’s share prices have been correcting aggressively like a jet that’s lost a bit of its speed.
What This Means for You
If you’re tracking this ETF, keep an eye on the volume trend. A healthy, stable volume combined with a price slide can suggest a good buying opportunity—especially for those who tune into the technical signals:
- Volume staying above the 50‑day average.
- Price wobbling below support levels but still active.
- Technical patterns like the pennant break indicating increased volatility.
In short, the price hit a trickle, but buyers remain at the rig—so the rocking ship may still be heading toward fresh sea lanes.
ARKK’s Daily Pulse: A Quick‑Take on the 200‑EMA and Resistance Road
The current chart for ARKK is painting a clear picture: the 200‑EMA (the blue line) is acting as a guardian, holding the price back from falling. If either TSLA or COIN triggers a pullback, ARKK could slip back toward the $43.63 zone in no time.
Why the Hopes Are Still Alive
- Higher Lows on the Radar: Prices are forming progressively higher lows, and the RSI is keeping pace. This suggests that buyers might be stepping back in, giving a chance for a rebound.
- Potential Upswing: If those higher lows hold, we could see a bit of bullish momentum kick in, especially if the RSI climbs back into its green zone.
The Crucial Checkpoint at $47.80
Forget all the excitement if ARKK drops below $47.80. This level is the breathing point that determines whether the bearish streak will revive or stall. • If it holds above $47.80, the bearish trend might pause and give the upside a breather. • If it falls through, the downside could resume its march.
Bottom Line
Ark Invest’s tickers are on an edge: 200‑EMA support is solid, but the $47.80 threshold is the gatekeeper. Keep your eyes on those higher lows and the RSI. Play it safe, but stay ready for that pop if those signals get on board.
Which are the winning ETFs?
How the Winning Funds Are Rocking the Market in 2024
Ever wonder which funds are turning the tables on investors in this year? Let’s break down the numbers and get the inside scoop on why certain ETFs are shining just brighter than the rest.
Momentum Champions
- iShares MTUM & MSCI USA Momentum Factor ETF – Both are up over 6% this year. The secret sauce? Two powerhouse tech stocks: NVIDIA (NVDA) and Microsoft (MSFT).
- In MTUM, NVIDIA makes up 5.4% and Microsoft 4.8% of the total mix.
Growth-Oriented Winners
- TCHP (iShares U.S. Technology ETF) and TRoW ElevBytes Blue Chip Growth ETF are each ~5% ahead, thanks mainly to Microsoft’s hefty 13.4% stake.
Don’t Underestimate the Surprise Generator
- ARKK may have stumbled in the opening weeks, but it’s no one to trust for half the pace of surprises. With key players like Roblox (RBLX) and CRISPR Therapeutics (CRSPR), the fund has the potential to flip the script for Cathie Wood’s vision this year.
Feel the Pulse Live
If you want to keep your finger on the market’s heartbeat, subscribe for real‑time updates on this post category straight to your device. No extra links, no code—just pure, juicy investment news that’s easy to digest and ready to share.
