These dynamics can be seen in the
SPDR S&P 500 ETF Trust (NYSE:SPY), the
Technology Select Sector SPDR Fund (NYSE:XLK), and the
Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY).
A classic broadening formation is forming in the SPY. It illustrates choppy and volatile action, which shows there is no clear leadership in the market. This type of action is usually followed by a move lower.
When markets are rallying, levels that had been resistance turn into support. This happens because sellers regret selling stocks that subsequently move higher and they try to buy them back. If this conversion process doesn’t happen, it’s usually a bearish signal.
Thanks to inflation fears, rising bond yields, and potential tax hikes, the outlook for tech has been cloudy. But Q.ai s deep learning algorithms have crunched the numbers to bring you this month s top US Tech Smart Beta ETFs the best, good, caution, and poor.
Which Leveraged ETFs Are Seeing Colossal Inflows? May 4, 2021
Are traders souring on small caps and running with the bulls on tech? The past week saw the strongest inflows in leveraged Direxion products, particularly the
Small cap strength was evident at the start of 2021, with the Russell 2000 up close to 20% in mid-March before correcting itself in April. Some analysts are pointing to the possibility of inflation fears stifling small caps.
“It hangs like the sword of Damocles over the small caps right now,” Schlossberg told CNBC’s “Trading Nation.” “Producer prices both from the production squeeze and just from the input costs could really have a material impact because I don’t think small caps have the pricing power right now in the marketplace to really pass that on to the consumer, and if they don’t, their margins are likely going to be squeezed.”
Stock Market News for May 3, 2021 Zacks.com 3 hrs ago
Wall Street closed lower on Friday primarily due to profit booking by investors. Moreover, weaker-than-expected earnings results by some big companies also dented investors confidence. All the three major stock indexes ended in red. For the week as a whole, these indexes had mixed performances. However, these indexes performed impressively in April.
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How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was down 0.5% or 185.51 points to close at 33,874.85. Notably, 21 components of the 30-stock blue-chip index ended in the red while 9 in green. The tech-heavy Nasdaq Composite finished at 13,962.68, tumbling 0.9% or 119.86 points due to weak performance by large-cap technology stocks.
April 30, 2021
Individual investors may prefer Windows or Mac, but most traders can agree that exposure to both can be beneficial in a short-term trading strategy with assets like the
With big tech companies like Microsoft and Apple releasing earnings, tech traders may be erring on the side of bullishness given their recent results. This is especially the case with TECL, given that the leveraged fund has 30% of its holdings in both stocks.
Microsoft reported its earnings earlier this week, ousting Wall Street expectations in both revenue and earnings per share.
“Microsoft posted the third quarter of its 2021 financial results today, reporting revenue of $41.7 billion and a net income of $15.5 billion,” an article in The Verge reported. “Revenue is up 19 percent, and net income has increased by 44 percent. Once again, Microsoft has seen strong growth for Xbox and cloud-related services.”