October 2020: Week 2
Edition #014 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.
Last week was the third positive week in a row for the market, alleviating some concerns of a threatening bear trend. Dow Futures are flat so it will be interesting to watch how Monday and the week play out, considering the strong close to last week.
Anyway, let’s jump right into it…
Weekly Changes:
Out of 114 Tech ETFs analyzed, the average Tech ETFs just managed to have its 4th positive week last week, gaining a very strong 4.51% on average.
Given the positive strength of the last few days, its no surprise to see that the top 4 ETFs were all Bull levered ETFs with $SOXL (Direxion Daily Semiconductor Bull 3x Shares) running up a huge 21.15% through the week.
The largest positive 1 week change we’ve seen while writing this newsletter.
Despite this positive week, $SOXLs top performing holding $XLNX (Xilinx, Inc. is an American technology company that develops highly flexible and adaptive processing platforms. The company invented the field-programmable gate array, programmable system-on-chips, and the adaptive compute acceleration platform) with a return of 17% through the week didn’t even manage to crack the top 5.
Those honors were largely left to holdings from $ARKK (ARK Innovation ETF) with $1.5b $NTLA (Intellia Therapeutics is a biotechnology company developing biopharmaceuticals using a CRISPR gene editing system) leading the week with a 37% return.
Not surprisingly, the bottom end saw the Bear ETF counterparts with $SOXS (Direxion Daily Semiconductor Bear 3x Shares) dropping 19% through the week.
Year-To-Date:
Of the 107 ETFs which have been around YTD, the average return sits at 27.65% (up from 20.57% last week). The S&P 500 ended the week with 7.99% YTD returns.
The top 5 constituents saw a bit of another shakeup compared to the prior week.
$ARKK and $ARKW both switched spots again, both notably crossing the 100% YTD return mark which is very impressive.
$WCLD climbed from 5th to 3rd
$CWEB climbed from 8th spot to 4th
$OGIG fell from 3rd to 5th
and $FNGS was pushed out into 7th spot.
The top 5 stocks from these ETFs were once again relatively similar.
Where we say continued gains from $MCRB which rose from $27.68 to close the week at $31.80
Meanwhile $FSLY (Fastly) had a very strong end to the week to finish up the week at an all time high price of $126.58. $FSLY is currently trading up another 2% pre-market today.
While we’ve seen a couple of companies raise guidance into this next round of earnings, Fastly did seem to have a positive reaction to its partnership with Google.
Although, on a closer read this memo reads very similar to a previous memo from a month prior.
So definitely keep your eyes open on this one.
As always, hope this issue gives you a better footing to start the week off on.
Thanks to everyone’s support to pass through 250 subscribers for this newsletter in 14 short weeks.
Thanks,
Stuart
Great write up this week. I’ve been seeing a good pattern with ARKK and you’re doing a great job covering it.