September 2020: Week 4
Edition #012 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.
For the last two weeks I’ve been commenting on how “we saw some retracement in the market. While last week seemed to hold positive, this most recent week has shown more strength in the Russell 2000 index compared to the Nasdaq 100 ($QQQ).” With Dow Futures up 300 pts at the time of writing this, this week we will hope to get a better indication of the market staying bullish.
Anyway, let’s jump right into it…
Weekly Changes:
Out of 114 Tech ETFs analyzed, the average Tech ETFs just managed to squeak in another positive week last week, gaining on average 0.87%, despite large gains in the top 5 ETFs (primarily thanks to their leverage).
The top 4 out of 5 ETFs this week were all bullish levered ETFs with 3x $TECL (Direxion Daily Technology Bull 3X Shares) leading the way.
The S&P 500 did fare better than the average ETF, rising a modest 0.93% to see green on the week for the first time in two weeks.
After a couple weeks of profit taking and respite, $ZM had a positive week, rallying back 14% to put the stock back at $496, just 1% shy of its 52 week (and all time high of $500.5). That said, shares are trading up 2.2% at $506 over the weekend, so are more than likely to open a couple of points into new positive territory.
Signs of bull market?
Not surprisingly. the levered bears found themselves in the bottom end of the rankings, after $TECS, $BATT, $REW were all in the top 5 returns the week prior.
Year-To-Date:
Of the 107 ETFs which have been around YTD, the average return sits at 17.42% (down from 18.11% last week largely thanks to the levered bear ETFs extensive losses). The S&P 500 ended the week at a neutral 2.36% YTD returns.
The top 5 constituents saw another modest shake up compared to last week.
$ARKW and $ARKK stayed in the top 2 spots but $ARKW clawed back closer after a tough week three weeks ago.
$FNGS rose from 5th to 4th
$CWEB fell from 3rd to 9th (after being in 6th the previous week)
$WCLD rose from 8th to 3rd place, after spending a couple of weeks out of the top 5 but bolstered by $ZM and $FSLYs strong week.
$HERO dropped from 4th to 6th
and $OGIG clawed back into 5th spot.
Inside the top 5 stocks from these ETFs, $MCRB (Seres Therapeutics Inc) held steady on the week, gaining just 20% on its YTD figure.
Meanwhile, $TSLA shareholders saw fit to take some profits around the much anticipated Battery Day where despite planned improvements noted by Joshua Clark at EV Shakeout
“What Tesla is doing with this is increasing the range of their vehicles by 54% and reducing the cost of kilowatt hours by 56%, which will allow them to churn out more cars at a lower cost with an overall investment rate of 69% per kilowatt hour reduction.”
the potential production capacity constraints the company may face until 2023-2025 weighed down investor sentiment.
Snow Watch
To close out the recap of last week with the continued thread of $SNOW (Snowflake), which:
Was listed to IPO at $120
Opened at $240 and had max stock price of $319
Opened last week at $226
Is set to open at $233 today, and starting to show some stability around the $63.3b market cap mark.
As always, hope this issue gives you a better footing to start the week off on.
Thanks again for reading,
Stuart
Excellent coverage on the past week, the market is really continuing to be “bullish”. Nice piece on $TSLA there, thanks for the plug.