In my President’s Day post I mentioned that I would provide some insight into how I generate ideas for new trades. There are infinite methods to do this. Running market scans across various metrics (new 52-week highs/lows, best performers), finding the strongest sectors and drilling down from there, flipping through a million charts, etc.
One easy way is to simply follow the moves of the best investors. Cathie Wood, CEO & Founder of ARK Investment Management is one of them. Thankfully for us, you can subscribe to their trading information emails and receive updates from them every evening. So nice of them 😊.
Cathie Wood
Image courtesy of Business Insider & ARK Invest
ARK product suite:
Here’s a look at the performance of the ARK products relative to the $SPX (black line) since the start of 2020. She’s great. They’re great.
ARK buy list — 2/16
Cathie and her team are not pure technical analysts and that’s fine by me. We may approach the markets in different ways but I am glad to get ideas from a great mind.
Let’s take a look at a couple of purchases from today’s report with intriguing charts.
Nintendo Co. ($NTDOY):
Here’s a weekly view of $NTDOY. Looks good. Price is breaking out to new highs after being underwater for ~13 years. As they say, the bigger the base, the higher in space. Momentum is also in a bullish regime as the RSI (red line at the top) has failed to get oversold in quite some time. Above $78, I think stock targets $118.
Teledyne Technologies ($TDY):
Here’s the daily view of $TDY. Prices haven’t quite broken out above the pre-pandemic highs but it’s trying. A good rule of thumb is that the more times a level is tested, the higher likelihood it will eventually break. Every time we approached the ~$397 level demand wasn’t able to absorb all the supply.
Is it different this time? Let’s see! If buyers can sustain a break above that level I think $TDY can target $520.
wrapping up
That’s it. Far from an exhaustive list of new buys from Cathie and the team at ARK Invest. I just found those two interesting. Maybe I’ll make “catching Cathie” a recurring series. Why not?
What do you think? Who are you favorite investors?