After a punishing three months that saw the Ark Innovation Fund (ARKK) fall 36%, Cathie Wood's high growth fund has surged back 30% in the last six weeks.
The US central bank announced it would raise interest rates twice in 2023. Since “the market” expected a larger shift after the surge in government bond yields and rising inflation expectations, growth stocks have been on a run.
But I’m not convinced this move in growth stocks is sustainable. On a technical basis alone, ARKK is overbought on the 14-day relative strength index (RSI):
Every time ARKK has been "overbought" (i.e. the 14-day RSI is 70 or higher) in the last year the...
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
WSO Alpha
WallStreetOasis.com