3 most shorted Ark Invest stocks to buy

InvestorPlace – Stock market news, stock advice and trading tips

It’s not just the market’s best-selling stocks that are falling this week. Bears are apparently everywhere. And the added selling pressure has not been without cause.

But if investors want to feel a little less miserable by the performance of their own portfolio, look no further than Cathie Wood and the heavily shorted Ark Invest growth stocks.

Next and most importantly, consider a purchase or two. Let me explain.

A bear’s roar is on many investors’ 401(k) and other related financial accounts. Apple (NASDAQ:AAPL), Home deposit (NYSE:High Definition), Boeing (NYSE:BA) and other heavyweights on the market.

Inside Friday’s session, large-cap and large-cap companies S&P500 is poised to end the week down 1.50% after briefly flirting with February’s corrective low on Tuesday.

So of course there is the Nasdaq. The tech-focused barometer is back with a bear market of around 20% from its all-time high in late November.

But as macroeconomic risks from the conflict overseas, inflation and interest rates erode the dazzling returns in these markets over the past couple of years, you’ll get little sympathy from investors involved in a market made up of many other stocks.

And that’s especially true if those moves reflect owning some of the most shorted stocks in the market, which also happen to be underdog Ark Invest stocks.

  • To block (NYSE:SQ)
  • DraftKings (NASDAQ:DKNG)
  • CRISPR therapeutics (NASDAQ:CRSP)

Today though, based on what we’re seeing today in three of these top-selling stocks and the fear of spreading favorably, rather than miserably, investors might consider the option of buy with pleasure.

Ark Invest The most shorted stocks to buy: Block (SQ)

Source: Charts from TradingView

The first of our Ark Invest games to buy, which is also among the best-selling stocks in the market, is Block.

The fintech giant has been through a grueling bear market since hitting an all-time high of $289.23 last August. Undoubtedly, this also provided a significant bank for some of the bearish 10% short interest on SQ shares.

But after suffering a correction that saw this arch and the top-selling stock short by as much as 71% in February, there’s reason to believe today’s bears are greedy.

SQ’s monthly chart reveals an oversold stochastic narrowly signaling a bullish cross. This is the first event of its kind since the start of the down cycle.

Additionally, with the scariest behavior of the past month testing the Fibonacci key and trendline support and reversing to form a bullish hammer doji, SQ stock appears to be at the intersection of the value of the growth.

I would recommend a modestly out-of-the-money medium-term bullish call spread or similar synthetic versus an SQ collar on this most shorted stock.

DraftKings (DKNG)

Source: Charts from TradingView

The next of our shortest Cathie Wood, Ark Invest stocks to buy is DraftKings.

The fantasy sports and online betting champion has been a losing proposition for investors betting on bulls to win. Shares have fallen 75% since peaking last March.

This, of course, provided a slam dunk opportunity for at least some of the bearish 13% short interest in DKNG stock.

Today, however, and with the bearish action turning into extreme technical “March Madness” on the monthly chart of the shortest Cathie stock, it’s not the time for the bulls to throw in the towel.

To avoid ever-possible downside risk should the February hammer fail, an actively managed collar or a slightly less favored $20 May or July call are smarter money bets, off and on the chart. price, to play the “more”. in this most shorted stock.

Ark Invest’s best-selling stocks to buy: CRISPR Therapeutics (CRSP)

Source: Charts from TradingView

The last of Cathie Wood’s best-selling stocks to buy is CRISPR Therapeutics.

For once in a while, bulls in CRSP stock do more than turn heads. Shares are up almost 18% this week.

But don’t think it’s too late to get in on the action in this next-gen genomics stockpile. The only investors late to the party are the bears looking to add to the roughly 16% short interest on this shortest stock.

Behind this week’s offer, CRISPR benefited from an interview with CRSP’s CEO at Cowen’s annual healthcare conference and an upbeat discussion of the company’s pipeline and business in general.

And today, the price chart of this shortest Ark Invest stock also expresses confidence that better days are ahead for CRSP stocks.

Currently, stocks are still more than 70% away from last January’s all-time high. But the real value of this most shorted stock relative to just being cheaper is that it continues to form this month inside the hammer candlestick.

Backed by CRSP’s Covid-related 76% retracement level and long-term trend support and stocks also signaling an oversold bullish crossover, the monthly chart looks ripe for a bull market rally.

Ultimately, and especially important with riskier biotechs, a fully hedged collar or bullish call spread equivalent is the trading plan of choice for this shortest stock.

As of the date of publication, Chris Tyler holds long positions (directly or indirectly) in Ark Innovation ETF (ARKK) and Ark Genomics Revolution ETF (ARKG). The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

The post 3 Ark Invest Most-Shorted Stocks to Buy appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button