HomeMarket NewsThe Spear Alpha ETF: Navigating Choppy Waters as Nvidia Leads Charge to...

The Spear Alpha ETF: Navigating Choppy Waters as Nvidia Leads Charge to All-Time Highs

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The Spear Alpha ETF SPRX traded flat on Wednesday, maintaining a tight range between $22.60 and $24.50 on declining volume.

This actively managed fund delves into enterprise digitalization, AI, automation, robotics, environmental focus, decarbonization, photonics, additive manufacturing, and space exploration. Outperforming Cathie-Wood’s flagship Ark Innovation ETF ARKK, it has seen a 3.6% YTD rise while ARKK dropped 4.24%.

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Stocks within the ETF are nearing all-time highs, with NVIDIA Corporation NVDA up 85% this year, serving as the largest holding at 10.88%.

Zscsaler, Inc ZS, the second-largest holding at 10.2%, surged 193% from May 3, 2023, to Feb. 8, 2024, before retracing.

For believers in diversification, SPRX also includes popular stocks like Advanced Micro Devices, Inc AMD at 7.84%, Snowflake, Inc SNOW at 7.01%, and Shopify, Inc SHOP at 4.39%.

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Assessing the SPRX Chart: Climbing to an all-time high of $25.66 on Feb.12, SPRX retraced 11.96% by March 19. On Monday, it rebounded from a higher low above $22.59, retesting and bouncing off that level on Wednesday.

  • A potential double-bottom pattern has emerged, hinting at an upward bounce for SPRX in the coming days. To confirm a new uptrend, a higher high above $24.02 from March 21 is needed.
  • During the retracement, dwindling volume suggests healthy consolidation rather than bearish dominance. A breakout to a higher high may spark bullish volume surges.
  • Bearish sentiment would be confirmed by a dip to new lows on increased selling volume, negating the double bottom pattern and potentially accelerating selling pressure.
  • Key levels include resistance at $23.50 and $24.47, with support at $23.06 and $22.78.

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