Score 8.5 (out of 10): ARK INNOVATION ETF sets up for +15.1% rally in 3 months

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What’s Going On Here?

Market commentator, Jim Cramer, has said that he likes most of Ark Innovation ETF’s top holdings after the recent growth stock meltdown. The “Mad Money” host has said that growth stocks have fallen far enough that averaging into positions makes sense.

Why Now?

ARK INNOVATION ETF has triggered a new high volatility signal (3 month). During similar occasions, ARK INNOVATION ETF shares had a median return of +15.1%, over the following 3 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for ARK INNOVATION ETF received a high score of 8.5 (out of 10). This insight was generated on 2022- February-3 with last price of 69.04.

What’s This Company About?

ARK INNOVATION ETF is an ETF for growth innovation companies. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: ARKK US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 79.43 (+15.1%) has been reached. Based on ARK INNOVATION ETF’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 66.54 (last price at 69.04), which is equivalent to a -3.6% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

15.1% (May-2021), 41.5% (May-2020), 36.8% (March-2020), 19.9% (December-2018), 1.3% (October-2018), 15% (April-2018), -3.6% (February-2018), 9% (August- 2017), 16.7% (June-2017), 7.4% (March-2016).

Historical Chart:

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Summary:

NameARK INNOVATION ETF
ViewUp
Star (1 to 10)8.5
Target+15.1%
Time3 months
Hit Rate90%

Popular Insights:

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