Category: Market News, Research & Commentary

2022’s volatility has continued throughout Q1, after showing some signs of strength in mid-March.

SPY, the SPDR S&P 500 ETF‘s MACD looks set to bearishly crossover this week, signaling increased volatility in the near-term.

QQQ, the Invesco QQQ Trust ETF that tracks the NASDAQ’s performance also looks to be signaling more volatility is coming, as their MACD is also beginning to curve bearishly.

Let’s take a look at how some sectors are over & underperforming based on our daily technical performance calculations.

Global Infrastructure (IGF), Energy (ERX), Brazil (FLBR) & Steel (SLX) Have All Bullishly Led The ETF Markets

IGF, the iShares Global Infrastructure Index ETF has grown ~7% since 2022 began, in addition to their 2.24% annual dividend yield.

Most of their price gains for this year took place in March over the last few weeks, which is why their RSI is oversold.

Their MACD still looks bullish, but they may blow off some steam in the near-term, providing an entry-point for new investors.

ERX, the Direxion Daily Energy Bull 2x Shares ETF has gained 105% since mid-December 2021, in addition to their 1.14% annual dividend yield.

Their MACD bearishly crossed over last week, as they’ve begun to establish a range in the $48-58/share neighborhood.

Their last couple of weeks have been lighter than average volume, and their RSI is approaching neutral again, signaling that they may be ready to continue climbing in the near-term.

FLBR, the Franklin FTSE Brazil ETF has grown 47.2% in 2022, excluding their annual 4.63% dividend yield.

FLBR’s MACD is bearishly rolling over, and their RSI is in overbought territory.

This should lead to some short-term losses that may provide entry-points for new positions in the coming weeks.

SLX, the VanEck Vectors Steel ETF has grown 30.5% since the beginning of 2022, not including their 5.44% annual dividend yield.

Their MACD is about to bearishly cross this upcoming week, and their RSI is just below overbought values.

This is another ETF that may have good entry-points for a new position as it begins to establish a new price range after such rapid growth.

FinTech Innovation (ARKF), Regional Banks (DPST), Germany (FGM) & Egypt (EGPT) Have All Bearishly Lagged The ETF Markets

ARKF, the ARK FinTech Innovation ETF has struggled since mid-November of 2022, losing almost half of its value over the last 5 months, and not paying a dividend yield.

While they have rebounded since mid-March, a neutral RSI & MACD that is curling over bearishly are signaling that there is more pain in store for this ETF.

DPST, the Direxion Daily Regional Banks Bull 3x Shares ETF has had a very volatile past year, shedding ~39% of its value since the peak in January 2022.

Their MACD has recently cross over bearishly, and their RSI is halfway between neutral & oversold.

While they offer a 0.71% cushion in the form of their dividend, this doesn’t look like the time to begin building a position in this space just yet, given the recent higher than average trading volume.

FGM, the First Trust Germany AlphaDEX Fund ETF has lost ~20% of its price since the middle of November 2021, although it does pay a 2.09% dividend.

Their MACD is beginning to signal short-term weakness, making it important to look at their RSI for additional clues as to how their price will perform in the coming months.

EGPT, the VanEck Vectors Egypt Index ETF has lost ~21% since the beginning of 2022, not including the 3.04% dividend that they pay.

Their RSI is coming back from being oversold, although it is still low at 36.

However, their MACD looks set to bullishly cross over, signaling that they may be prime for a near-term uptrend in price.

Tying It All Together

While broader market indexes are looking like there will be an increase in short-term volatility, there are still many bullish opportunities for profits in the market.

Based on the trading volumes of many of the names I looked at, there looks to be a lot of uncertainty still about the overall direction of the markets.

The sectors & areas mentioned above all have unique opportunities compared to other ETFs, and utilizing their options can help improve profits as the market moves volatily.

*** I DO NOT OWN SHARES OF SPY, QQQ, IGF, ERX, FLBR, SLX, ARKF, DPST, FGM or EGPT ETFs ***

Another week of earnings calls, inflation data & international relations news awaits us, after a Monday holiday in the United States.

One of the best indicators on market sentiment is going to lie in the volume levels of the index-based ETFs, as inflows & outflows there will reflect the broader market’s feelings on the headlines.

SPXL, the Direxion Daily S&P 500 Bull 3x Shares ETF has been trading at higher than average volumes so far in 2022, mostly on weakness.

Their MACD implies that there will be more volatility coming in the week ahead.

TQQQ, the ProShares UltraPro QQQ ETF has also had similar fate, although a bit more extreme as we kicked off 2022.

Their MACD is about to bearishly cross, although their futures are looking up in Wednesday’s pre-market trading.

Gold Miners (NUGT), Copper Miners (CPOX), South Africa (EZA) & Greece (GREK) Bullishly Leading The Pack

NUGT, the Direxion Daily Gold Miners Index Bull 2X ETF has rebounded coming into February 2022, after starting the year off on a sluggish foot.

Their RSI is showing that they’ve become a bit overbought, but with a still bullish MACD & the 10 Day MA moving in on the 200 day on high trading volume, there may be momentum to reach $61.94.

COPX, the Global X Copper Miners ETF has also made a strong recovery in February, after starting the year off down.

Their MACD looks to be about to bearishly cross, which should be an interesting one to watch play out given the nature of the Russian sanctions that we are seeing.

I’ll be keeping an eye on their RSI as it approaches neutral territory again in the coming days to see if it can regather momentum.

EZA, the iShares MSCI South Africa ETF has been on a bullish run since the middle of December 2021, gaining 18.7%.

EZA’s MACD is beginning to curl over bearishly after 2 days of declines, which may signal buying opportunities as it establishes a new range in the $52-54 price levels, with a 1.82% cushion provided by their dividend yield.

GREK, the Global X MSCI Greece ETF has also experienced strength since November 2021, gaining ~17%.

Last week they had a bearish MACD crossover, and their RSI has come back to neutral.

If their price can stay above the 10 Day Moving Average they look to have more momentum to come in the near-term.

Russia (RUSL), Social Media (SOCL), Sports Betting & iGaming (BETZ) & Solar (TAN) Sub-Industries All Bearishly Lagging The Pack

RUSL, the Direxion Daily Russia Bull 2X Shares ETF has been falling since November 2021, with what looks like more pain to come as their MACD crosses bearishly.

This one looks to be a bit too uncertain at this time, given the nature of the international sanctions being discussed, and they only offer a 1.43% cushion via the dividend.

SOCL, the Global X Social media Index ETF has also been experiencing weakness since November 2021.

SOCL is also faced with more bearish momentum, with their MACD crossing bearishly, and their RSI showing more room to fall in the near-term.

BETZ, the Roundhill Sports Betting & iGaming ETF has been weak since October of 2021, and does not look ready to begin rallying again just yet.

Last Friday’s gap down day indicates that there will be more losses for BETZ in the near-term, as their indicators are all currently bearish.

TAN, the Invesco Solar ETF has underperformed since November of 2021.

While they have been improving slightly in February 2022, their MACD signals that they’re going to be experiencing more losses in the near-term.

Tying It All Together

The rest of this week will prove to be interesting, as futures are currently up (Wednesday at 9:02am), as it’s being reported that the sanctions that have been announced were softer than what was anticipated.

Between earnings calls, the Ukrainian situation, PMI numbers & inflation related reports on Friday we look to have a rocky short trading week ahead of us.

I’ll be paying attention to the volume levels of the index-tracking ETFs for clues about market sentiment throughout the rest of the week.

This past week saw a rebound for the markets, after starting 2022 off in a tumble.

Volumes still remain elevated compared to the year prior’s average, as traders are repositioning themselves into a rising interest rate environment.

Earnings calls are also going to continue into this week, which should shed more outlook into what companies are seeing for the upcoming year’s projections in a year already muddled with uncertainty.

TQQQ, the ProShares UltraPro QQQ ETF that tracks the NASDAQ’s performance 3x began climbing back from recent losses, with Friday’s price breaking out above their 10 Day Moving Average.

While its RSI is still oversold, as it creeps back to neutral keep an eye on the MACD, which while it is bullish currently, looks to be turning back over for a bearish crossover in the coming week.

SPXL, the Direxion Daily S&P 500 Bull 3x Shares ETF is in a very similar position.

They’re slightly more bullish, but still signaling that there will be more near-term pain to come as their RSI approaches neutral.

Let’s hop into the leaders & laggards from this week’s data!

Gasoline (UGA), Natural Gas (FCG), Qatar (QAT) & Equities For Rising Rates (EQRR) All Leading The Pack

UGA, the United States Gasoline Fund, LP ETF has been on a great run since early December, gaining 40% in two months.

It’s no surprise that their RSI is heavily overbought at 80.91, but there looks to be more momentum in the tank for UGA.

I’ll be eyeing the MACD as the spread between the price & the 10 Day Moving Average grows narrower; the lighter than average recent volumes do signal some uncertainty at these high price levels.

FCG, the First Trust Natural Gas ETF has also been enjoying a nice run that began back in August of 2021; gaining 71%.

Their volumes continue to be strong, but momentum does look to be waning.

This makes sense given we are near the end of winter, and so far it looks like all perceived possible winter energy crises have been averted.

Given it is at a new high, expect to see a bit of a pullback around the $21-level as it establishes a new price range.

QAT, the iShares MSCI Qatar Capped ETF has climbed steadily over the last year.

Their RSI is heavily overbought at 76; I am eyeing what happens as they try to cross above the $22.60/share mark, as their MACD is showing signs of losing momentum & rolling over bearishly.

EQRR, the ProShares Equities For Rising Rates ETF has been trading on above average volume coming into 2022, to no one’s surprise.

With an RSI that is still neutral & a 1.62% annual dividend yield, this may be a good name to get into while it gathers momentum.

Last week’s bullish MACD crossover also signals that, but first they will need to re-test & break out above the $54.12/share price level.

Retail (RETL), Biotechnology (BIB), Cloud Computing (SKYY) & Emerging Market Corporate Bonds (CEMB) All Lagging The Pack

RETL, the Direxion Daily Retail Bull 3x Shares ETF has been tumbling since mid-November.

Volumes have increased in 2022, where it has managed to hold above $20.76/share, but their MACD is signaling that there will be additional short-term pain to come, as it bearishly rolls over.

With limited yield to collect, I’d be keeping an eye on their RSI to time an entry if this is something of interest, but it doesn’t seem like a safe time just yet to begin establishing a position.

BIB, the ProShares Ultra NASDAQ Biotechnology ETF is another name that has been trying to establish its footing, since it began falling in September of 2021.

While its MACD has been bullish since the beginning of February, their recent trading volume is light, indicating that there is no clear sentiment about where its price level should be.

This one is another to wait on before beginning a position, as they do not offer a dividend yield to provide a cushion for additional near-term downside, and only hit their lowest price of the year within the last 2 weeks.

SKYY, the First Trust Cloud Computing ETF is one of the top performing Cloud Computing ETFs, but the space as a whole has been performing poorly.

They have dropped 24% since early November, as many of SKYY’s holdings will be adversely impacted by rising interest rates.

Keep an eye on their MACD, which is currently rolling over bearishly.

Given that their RSI is approaching neutral again & volumes have been above average in the last month, this looks set to go back down & test its support levels, hopefully holding above $90, as otherwise it’s a long drop to $84.84.

CEMB, the iShares Emerging Markets Corporate Bond ETF has also been underperforming since August, but may have a near-term opportunity for profits.

Given that they offer a 3.6% dividend yield & have options, there may be an opportunity to buy puts here while establishing a position on the way down.

This way, you can collect interest from the dividend, while also hedging with the puts while CEMB establishes a new support level.

With their bearish MACD & oversold RSI, this could present an interesting opportunity.

Tying It All Together

I don’t think anyone is surprised that energy names & rising rate-oriented equities have been having a great run in the last few months.

The lack of confidence in consumers & emerging market corporate bonds is cause for concern though, which when paired with rising fuel prices could spell more trouble on the horizon.

Should there be a wave of defaults & an already cautious consumer, economic activity will be hampered a bit, which in turn will create an issue for the Federal Reserve, who is already somewhat cornered into taking the actions that they’ve stated as a goal for 2022.

The good news, is that spring is around the corner, so demand for energy should ease a bit, as consumers go from using it for heating to using it for traveling & recreation, which is also good for the economy in a broader sense.

January 2022 continues to be an above average trading volume month for the major market indexes.

SPY, the S&P 500 ETF managed to stabilize this last week a bit, after spending the rest of the new year downtrending.

Looking at their RSI, it looks like there may be more selling to come in the near-term, particularly as their 10 Day Moving Average approaches their 200 Day MA bearishly.

QQQ, which tracks the NASDAQ index also was able to gather some footing, after also sliding downward into the new year.

They too look set to resume the downward movements in the near-term, as their RSI comes out of deeply oversold territory & their 50 Day Moving Average is only ~5% away from crossing bearishly through the 200 Day MA.

It still doesn’t quite look like time to be buying into the markets just yet.

Let’s dive into some of the sectors & industries that are performing the best & worst below.

Corn (CORN), Soybeans (SOYB), Palladium (PALL) & Multifactor Energy (JHME) Are All Leading The Pack

CORN, the Teucrium Corn Fund ETF has been steadily climbing since October of 2021.

With their RSI approaching being overbought & their MACD beginning to flatten out, there may be some pain on the near-term horizon here, although so far they have fared better in 2022 than the broader market indexes.

Recently though, there volumes have been lower than average when compared to the rest of the year.

SOYB, the Teucrium Soybean Fund has also enjoyed a strong end of 2021 that carried into 2022, gapping up 1.48% on Friday 1/28/2022.

With their 50 & 200 Day Moving Averages bullishly crossing, there looks to be more strength in the near-term for SOYB.

Keep an eye on their RSI though, as that will need to neutralize more as they establish a new price range.

SOYB’s volume has been above average for the last couple of months though, showing strong support in their price movement.

PALL, the Aberdeen Standard Physical Palladium Shares ETF has recovered nicely since mid-December’s ~18% drop.

While they do not have options for trading puts, there looks to be signs of continued momentum in the near-term, after their price just broke out above their 200 Day MA.

Their RSI will cool down in the near-term, but that may prove a buying opportunity, as their 10 Day MA is fast approaching the 200 Day MA, which will add additional strength & support to drive prices higher.

JHME, the John Hancock Multifactor Energy ETF has steadily grown since September, while also paying a 2.2% annual dividend.

The last few days have seen increased volumes, but their price will need more momentum to break above the $26.54 mark, which may be difficult with their RSI just about in overbought territory.

However, their MACD implies that they may be ready to keep climbing, but first they need to keep their heads above the $26.22-price level.

High-Growth Entrepreneurial (ENTR), Cloud Computing (SKYY), Cancer Immunotherapy (CNCR) & Clean Energy (ACES) Are All Lagging The Pack

ENTR, the ERShares Entrepreneur 30 ETF has been in relative free-fall since a large gap down in mid-November.

While their MACD looks to be turning around bullishly & their RSI is deeply oversold, I’ll be watching how they manage to keep their heads above the $12-level to begin establishing a support level.

With such a low dividend yield I don’t see any advantage into rushing into this name, until after it has built up some more momentum & strength.

SKYY, the First Trust Cloud Computing ETF has also experienced similar troubles since mid-November 2021.

They’re going to look to settle their RSI in a more neutral area, and may begin building support off of this $85-level that we are seeing, as their MACD looks to be gearing up to turn bullish.

Their trading volumes continue to increase vs. last year’s averages, which should help them establish a floor of support.

However, given the nature of the industry that this ETF tracks I’m not sure that their <1% dividend yield will do much in terms of limiting downside risk here & we could see more pain to come as interest rates rise in the spring.

CNCR, the Loncar Cancer Immunotherapy ETF is another name that has had constant struggles since mid-November 2021.

Their RSI is deeply oversold, but it doesn’t appear clear that they are beginning to form a bottom & gain support.

While the MACD is becoming increasingly more bullish, there is still risk associated with trying to time their bottom here.

One thing of comfort, they offer a 10% annual dividend yield, giving you a cushion of protection until they reach around the $16.50 level should they continue to fall.

I’ll be keeping an eye on them & be doing more research, as the 10% yield could be very worthwhile, research pending.

ACES, the ALPS Clean Energy ETF also has faced big headwinds since mid-November 2021.

Another name that has yet to find a level of support, that also offers too low of a dividend to make trying to time the bottom in pricing worthwhile.

Their heavily-oversold RSI & MACD that is turning bullish may help solve that problem & build them support in the $48-49 neighborhood, but it’s still too early to speculate.

2022 has only seen slightly above average volume for them, which doesn’t inspire a lot of optimism & confidence.Tying It All Together

Tying It All Together

One of the most clear things that the charts are telling me as I write this is that no one really still knows what is going on.

How this uncertainty will play into the pricing of stocks & ETFs is anyone’s guess, but in times of extreme volatility like we are experiencing watching the technicals on the names you’re interested in becomes all the more vital.

Also, having exposure to quality, high-yielding dividend stocks & ETFs, as well as some of the volatility based ETN exposure is going to be very beneficial to your portfolio.

Let’s see what happens this week!

*** I DO NOT OWN ANY OF THE ETFs MENTIONED ABOVE, ALTHOUGH I DO OWN SPXS CALLS AT THE TIME OF WRITING THIS ***

Let’s be honest, no one needs me to break down what 2022 has been like for the S&P 500 & NASDAQ; the charts speak for themselves & we all know why its happening.

SPY & the S&P 500 have been less impacted than the NASDAQ, which is to be expected in an anticipated environment of raising rates.

SPY’s in oversold RSI territory, but their MACD & volume levels don’t convince me that the pain is through just yet.

Let’s see how they hold up around the $424-430 range, which is only ~1% away.

QQQ has fared worse, and looks to be on the verge of having a bearish 50 & 200 Day Moving Average crossover, adding to downward pressure on prices.

With an RSI at 25, there should be a bit of bouncing around to get them out of such deep oversold territory, but the MACD & MA situations don’t look pretty.

Oil & Gas Exploration & Production (IEO), Saudi Arabia (KSA), Wheat (WEAT) & High Dividend (HDV) Names Have All Been Beating The Pack

IEO, the iShares US Oil & Gas Exploration & Production ETF continues to be one of the top performing ETFs from a technical standpoint.

Their MACD looks set to roll over bearishly, although yesterday they bullishly crossed their 10 Day Moving Average on better than average trading volume.

With an RSI at 61, this looks to continue higher to re-test the $73.05-level.

KSA, the iShares MSCI Saudi Arabia Capped ETF has also continued having a strong year.

They too have a bearish looking rollover starting on their MACD line, yet yesterday broke out above their 10 Day MA on above average volume.

With their RSI approaching being overbought, it will be interesting to see how they fare against the $45.37 resistance level, ~2% away.

WEAT, the Teucrium Wheat Fund ETF has also been outperforming many of its peers in the ETF markets.

WEAT ETF looks to have solid momentum to test the next level of resistance at $7.82/share, after briefly breaking through the price level yesterday.

Based on their RSI, MACD setup, and 10 Day Moving Average about to bullishly cross through the 50 Day MA, on high trading volume, this looks to have solid momentum behind it.

HDV, the iShares Core High Dividend ETF has seen short-term difficulties, but an overall strong performing year.

While their MACD is still negative, their RSI has gone back to neutral & they have had above average trading volumes in 2022’s sessions.

HDV will need to break above the $102.42 level before testing the $103.74 price level.

FinTech Innovation (ARKF), Internet Giants (OGIG), ESG Mid-Cap Growth (NUMG) & Clean Power (CNRG) Names All Lagging The Pack

I don’t think anyone is surprised to hear that ARKF ETF, the ARK FinTech Innovation ETF is having a terrible year.

RSI is terribly oversold, volumes are all above average, price is 1%+ below the 10 Day MA & the MACD is still bearish.

With no yield, this looks like complete & utter junk.

OGIG, the O’Shares Internet Giants Index ETF has also been falling steadily over the last year.

It’s another one that’s got above average volumes, a bearish MACD, very oversold RSI, & is only ~1% off of the year’s bottom in pricing.

NUMG, the Nuveen ESG Mid-Cap Growth ETF has also faced a similar set of difficulties this year.

They too are still in a free fall based on their technicals; oversold RSI, MACD still very bearish & the recent death cross of the 50 & 200 Day Moving Averages spell more trouble to come as this name tries to establish footing.

CNRG, the SPDR S&P Kensho Clean Power ETF is another name that has been getting beaten badly over the last few months.

Another underperforming name, trying to figure out where it bottoms out.

RSI deeply oversold, MACD bearish & recent volume is above average.

Not sure where we will see this bottom, but for those interested in a position, there is a 1.57% price cushion for protection via their dividend yield.

Tying It All Together

Overall, there looks to be more selling ahead of us, although we should get more clues today on the Federal Reserve’s plans, which will be nice.

I would be focused on having options hedges for anything being bought now, as there does look to be continued volatility in the near-future.

Let’s see what the rest of the week holds!

This week looks set to explain itself just by looking at the charts for the S&P 500 & the NASDAQ.

TQQQ’s punch bowl looks to have been emptied & the lights turned off, UPRO is doing a bit better, but still showing a lot of weakness.

TQQQ closed beneath its 200 Day Moving Average today (1/18/22), meanwhile they’re finishing the last of the drinks in the fridge at UPRO’s place, as MACD’s & RSI’s are showing the party is over (at least temporarily).

Adding Earnings Calls on top of all of the other recent news highlights is going to ensure an interesting couple of weeks, as we creep closer to rate hikes in the US.

Commodities (GSG), Energy (JHME), Mexico (MEXX) & India (INDL) Are All Leading The Pack

It’s no surprise to anyone that commodities are in demand.

GSG ETF tracks futures contracts on a wide range of commodities & has performed strongly over the last year.

As their RSI approaches 50 it will be interesting to check in with their MACD trend, as volumes haven’t been high in their recent decline.

JHME, the John Hancock Multifactor Energy ETF has also performed strongly this past year.

I expect some near-term pullback, as their RSI settles down from being so overbought.

MEXX, the Direxion Daily MSCI Mexico Bull 3X Shares ETF has also been having a great performance this year.

However, judging by their recent bearish MACD crossover & 50:200 Day Moving Averages there looks to be a nearing decline in prices, which could prove a buying opportunity for those looking to establish a position.

INDL, the Direxion Daily MSCI India Bull 2X Shares ETF has also had a strong year.

This is another one to watch, as their MACD & Price:10 Day MA are showing that there may be more near-term pain to come.

Small Cap Utilities (PSCU), Global Water Index (CGW), Aerospace & Defense (XAR) & Homebuilders (XHB) All Lagging The Pack

PSCU, the Invesco S&P Small Cap Utilities ETF has been underperforming over the last year.

There looks to be more pain to come, but depending on its holdings there may be an entry-opportunity on the horizon, as there is a ~3% annual cushion in the dividend yield.

I would be keeping an eye on their MACD & volume levels before beginning to make any type of move though, based on their moving averages:price & RSI.

CGW, the Invesco S&P Global Water Index ETF is another that has had a difficult time recently.

Another one in free-fall that may be worth looking at an entry to eventually if it fits your portfolio strategy.

There is less cushion though, as their dividend yield is only 1.74%.

XAR, the SPDR S&P Aerospace & Defense ETF has also been having a difficult year.

This looks to have more pain in the near-future, with the MACD about to bearishly cross, bringing the 10 Day MA below the 50.

XHB, the SPDR S&P Homebuilders ETF has had a tough 2022.

They’re looking at dipping into oversold RSI territory if they can’t establish a range above the 200 Day Moving Average.

Tying It All Together

Market participants are all still trying to figure out how to make sense of the current headlines.

Add in the adjustment in interest rates & how that will adversely impact “year ahead earnings” investment styles that many folks did during the tougher COVID months & it muddles the question even more.

While there do look to be discounts for starting new positions on the horizons, it’s tough to tell when the best moment is, but using these ETFs as barometers certainly helps.

Of course, look at each ETF’s holdings before making any full on judgements about them & their related sectors.

*** I DO NOT OWN SHARES OR OPTIONS CONTRACTS FOR OF ANY OF THE NAMES LISTED ABOVE ***

One week into 2022 & its already been a hell of a time.

Broader indexes are already having difficulties in the new year, as investors try to make sense of what the Fed’s policies for the year & how that will impact inflation & investing strategies, all while trying to understand what Omicron’s impact on life will be.

QQQ, an ETF that tracks the NASDAQ is down 5.4% in the first days of trading, while SPY, an ETF that tracks the S&P 500 is down 2.6% for the same period.

It’s still awfully early on in the year to be making major assumptions & expectations, but the technicals on the charts signal that there will be more volatility & moves downward this year, with the last week only being a taste of what’s to come.

Regional Banks (DPST), Natural Gas (FCG), Peruvian Equities (EPU) & Consumer Staples (XLP) All Are Performing Well On Strength

Regional Banks have had quite the turnaround since July of 2021.

DPST, the Direxion Daily Regional Banks Bull 3X Shares ETF has nearly doubled in price since then.

While their moving averages look appealing, I may keep an eye on DPST’s RSI, which is in overbought territory, as well as the angle of their MACD.

This may be an opportunity for beginning or adding to an existing position coming in the near-term as it begins to establish a new price range.

FCG ETF, which is the First Trust Natural Gas ETF has also rebounded from the troubles that it saw in July.

With their RSI back around 60 & a bullish MACD, there may be more momentum to power through the $19.38-level, which was their high from November 2021.

FCG’s technical growth over the last year has looked very consistent though.

EPU, an ETF that tracks Peruvian Equities has also been performing very well recently, reversing a months-long slide in August to recover most of its lost gains.

Their RSI is a bit rich at 76.5, which may lead to entry-points for new position or adding to existing positions as it begins to establish a new range after a period of high price growth.

How consistent their volume remains will be key in determining this, with positive, above average volumes being better than weaker volume & limited price movement.

XLP ETF tracks consumer staples stocks, and has also had a very strong performance this year.

XLP’s recent volume has been stronger than the year’s average & with a bearish MACD crossover taking place there may be some weakness to buy into in the near future as their RSI cools off from overbought levels.

Cannabis (TOKE), Moonshot Innovators (MOON), Gig Economy (GIGE) & China (PGJ) ETFs Are All Bearish Laggards

TOKE, the Cambria Cannabis ETF has had a tough 2021, losing over half of its price since February of last year.

While TOKE’s MACD trend looks like it could cross bearish soon, their RSI implies that there should be more strength to come.

Looking at their near & mid term moving averages, this could be ripe to reverse course in 2022.

MOON, an ETF that tracks moonshot innovators & related companies has also had a poor year.

Unfortunately, that looks to get worse in 2022 when we consider the rate hike path that so far has speculated 2-4+ hikes in interest rates this year.

RSI is oversold, but MACD implies more falling to come & their moving averages don’t seem to offer much help.

On less than average volume, this one may not be worth looking too deeply at just yet for a turnaround.

GIGE, an ETF that is tracking the Gig Economy has seen a steady falling since mid-February of 2021.

This is another one that you may want to sit tight on trying to find the bottom, as there isn’t much signaling that the losses are done just yet.

They’ve already gone into oversold RSI territory & continued to fall, so this one looks best to wait on trying to build a position.

Lastly, we look at PGJ, an ETF that tracks companies that receive large portions of their revenues from business with China.

PGJ looks to be trying to establish a bottom as we enter a new year, based on the 2021 lows.

With their 10 Day Moving Average & price even when I took the above screenshot, it is a step in the right direction.

A word of caution though, is their RSI is back up to almost 43 & trading volumes have been well above average recently.

People seem to be finding consensus that the past month’s range seems like fair pricing, but with so many variables at play it is tough to guess what’ll happen next week.

Tying It All Together

All-in-all there looks to be an exciting week ahead in the markets as we rumble into the 2022 trading year.

It’ll be interesting to see how data reported this week compares to previous periods, as there still seem to be a variety of responses by governments & businesses to omicron.

Inflation & supply chain issues are also another area of interest, as again these seem to vary greatly based on locations, both in the US & abroad.

Of course the question that is on all of our minds is, looking at the current technical status of the major indexes, when is the rug finally going to get pulled out from under this market?

*** I DO NOT OWN SHARES OF ANY TICKER MENTIONED IN THIS ARTICLE, WITH THE EXCEPTION OF A SMALL POSITION IN TOKE***

This week looks to start off on a slow note, pending any overnight news, with no US economic data being presented until PPI numbers Tuesday morning.

Import price levels will be interesting to see, especially given that ports are still backed up & going to unique unloading strategies to account for winter weather.

While ships will be using less fuel by traveling slower from Asia, there will be additional costs as many of these journeys are now 7-10 days longer than normal.

Wednesday also has the homebuilder index numbers, and the FOMC announcement, and Thursday will shed light into unemployment, housing starts, as well as manufacturing data such as the PMI.

Last week the NASDAQ gapped back up to around the levels it was at at the end of November.

Volume got back above the year’s average, but their MACD is still bearish/flattening out, with the 10 Day Moving Average just below the bottom range of Friday’s low price.

SPY looks to have more momentum, with a bullish MACD crossover last week on slightly above average volume, settling in for the week <1% off of all time highs.

However, it will be interesting to see if this climb can continue on into a Christmas rally.

US Home Construction (ITB), Rare Earth/Strategic Metals (REMX), Healthcare (CURE) & Consumer Goods (UGE) ETFs All Leading The Way Bullishly

US Home Construction ETF ITB is showing expectations that the homebuilder data this week will be good, as it continues its bullish climb.

Look for their RSI to drop a bit in the near-term, as it is currently overbought at 73.

Three of their last 4 sessions have closed lower than they opened, which is an interesting sentiment point, but their MACD looks strong still.

REMX, an ETF that tracks companies that produce, mine & refine rare earth & strategic metals has had a strong year.

While they’ve stalled out a bit in this current quarter, there may be a good entry point for a position in the near-future, with the 10 Day MA being bullishly crossed by their price level Friday.

CURE, the Direxion Daily Healthcare Bull 3X Shares ETF has had a strong year, including 7 consecutive days of gains.

With an RSI that is still relatively neutral/beginning to look overbought, there looks to be more near-term momentum for this & other similar names.

Their recent volumes have been slightly above average as well, with a bullish MACD crossover in the middle of last week also there to provide additional upward momentum.

UGE has also had a solid year, with a 44% increase excluding dividends.

While volumes recently have been low, their MACD appears to begin to be turning bullish, which paired with a neutral RSI could set them up for solid short-term momentum.

China Internet (CWEB), Physical Palladium (PALL), Fallen Knives (NIFE) & Emerging Market eCommerce (EWEB) ETFs Have All Lagged Bearishly

CWEB, the Direxion Daily CSI China Internet Index Bull 2X ETF has had a difficult year, losing ~75% of its share price in the last year.

Volume has increased substantially for CWEB since mid-summer, and there could be a change in price direction in the near-term, with a bullish MACD crossover impending, and an oversold RSI.

Physical Palladium names have also had a difficult year, with the end of November & early-December seeing more losses.

Two gaps down to end the last week looks like they may still have more pain in the near-term, however they have not fallen to the lows that they saw in late November, and have an oversold RSI.

NIFE is an ETF that tracks stocks that have recently fallen, but have strength in their financials that can make them rebound to outperformance.

What is interesting about NIFE is that they offer a 5.76% dividend yield, which is higher than most names that we cover in this section.

Their MACD is beginning to look healthier, but it is tough to say if this will be able to turn around in the near-term or not based on their overly light volume of recent.

They also tend to move in gaps up or down, which also makes it a bit speculative.

EWEB ETF is another under-performer for the year, which tracks emerging markets internet & eCommerce stocks.

Emerging markets have been an area of concern in many sectors this year, with EWEB’s holdings being no different.

This ETF may get some upward momentum in the near-term courtesy of their MACD about to crossover bullishly, and their RSI is oversold.

However, most of the last 4-5 months has been on extremely light trading volume when compared with the rest of the year’s chart, signaling that the sentiment there is still somewhat a “wait & see”.

Tying It All Together

This week will be interesting as markets will have a lot of data to digest, as well as updates related to COVID variants.

I will be most interested in seeing what types of trading volumes we see, with people beginning to prepare for the holidays, while also trimming gains or losses from 2021’s returns.

Overall, it looks to be an interesting week ahead.

*** I DO NOT OWN SHARES OR OPTIONS CONTRACTS FOR ANY OF THE ETFs LISTED ABOVE ***

Volatility began creeping back into financial markets this past week, just in time for some holiday discounts.

What is particularly interesting about it this time around though is that the levels of volume are far above average for the year, and above where they were in other, more recent volatile periods.

SSO, the ProShares Ultra S&P 500 ETF’s price settled below its 50 Day Moving Average, with an RSI of 42.

This shows there is still more pain to come in the near-term for the S&P 500, as concerns over omicrom, as well as the potential lockdown measures that will take to combat it hang over investors’ heads.

With much discussion about the rate of tapering & rate hikes via the Federal Reserve, the NASDAQ tech-heavy index also saw above average volume in their declines.

While their RSI also signals that there is more near-term losses to come, they closed just above their 50 Day Moving Average.

Still, traders should be on the lookout for the death cross that each index is inching closer & closer towards each passing day.

20+ Year Treasuries (TMF), Semiconductors (SOXL), Industrial Real Estate (INDS) & Technology (TECL) ETFs All Have Had Bullish Runs

TMF, an ETF that tracks 20+ Year Treasuries has enjoyed strong gains recently.

Their moving averages have begun signaling more bullishness is to come, although there may be some decent entry points in the near-term as their RSI will need to cool off while they establish a new price range.

Semiconductors have somewhat stalled out at their top range, as seen with SOXL ETF.

SOXL’s volume has remained about average, but with a now neutral RSI & continuing issues with supply, there may be more positive pressure on these names.

INDS ETF, which tracks industrial real estate has also been on a steady incline all year.

INDS’s recent volumes have also been above average for the year, as their RSI cools down from overbought conditions this last week.

Watch their MACD, which looks to be signaling more growth in the coming days as it begins to flatten/curve upwards.

TECL, the Direxion Daily Technology Bull 3X Shares ETF is cooling down with all of the talks of rate hikes & tapering, which may provide a decent entry point in the near-term.

Their RSI is now dipping into the oversold side, although they may have a bit more room to fall based on their MACD & elevated volume levels compared to the year’s averages.

Genomics (ARKG), Aerospace & Defense (DFEN), Betting & iGaming (BETZ) & Streaming Services (SUBZ) Are All Bearish & Lagging The Pack

ARKG, an ETF that seeks exposure to securities that are involved in genomics has been horribly lagging the market recently.

Their RSI is severely oversold, which may signal a coming rebound in the near-to-mid term.

However, like everything else, their volumes have recently been above average, signaling there will likely be more pain to come before the rebound.

DFEN ETF, which tracks aerospace & defense securities has also been underperforming.

They too have an oversold RSI & higher than average volume.

However, their MACD looks to be turning, which may prove to be a reversal from their recent decline in price after multiple gap down days in the last couple of weeks.

BETZ, the Roundhill Sports Betting & iGaming ETF is another one with a heavily oversold RSI.

What’s remarkable here is that nearly every day since the end of October their share price has continued to fall.

With an RSI of 16, they should at least be able to begin establishing a new range here, unless broader market volatility sends them deeper into descent.

SUBZ, the Roundhill Streaming Services & Technology ETF has also been facing difficulty since launching last February.

This is another name that has seen nearly all downward momentum over the last month, with an extremely oversold RSI.

They haven’t had much in terms of severe trading volume since they were first introduced to the market, which shows many investors are likely still weary of them & their holdings.

Tying It All Together

Next week looks to be interesting, as we await news about the omicron variant of COVID, as well as learn if there are more clues coming from the Federal Reserve about the expected taper pace.

Pending Home Sales, PMI Data & Unemployment Data will also be closely watched, after this week’s unemployment numbers left many folks scratching their heads.

Based on the technicals that we reviewed above, it looks like there will be a bit more volatility as we move closer to the end of 2021.

Earnings calls continued on throughout the week, and markets continued to climb steadily.

Upcoming news about the new Fed chair should be announced in the coming days, which may bring a temporary shock to stocks in the event that Powell is not selected again.

The S&P 500 & NASDAQ are both beginning to signal that there should be a bit of a shakeup in the near future when looking at their technicals

The SPXL ETF that tracks the S&P 500’s MACD had a bearish crossover, although on somewhat weaker than average volume last week, bringing their RSI back from overbought territory.

The NASDAQ tracking ETF TQQQ remains in overbought territory in their RSI, although their MACD has rebounded from what was potentially going to be a bearish crossover.

TQQQ’s volume has been a bit stronger than usual this week.

Consumer Discretionary (WANT), Carbon (KRBN), 5G Economy (WUGI) & Russell Growth Over Value (RWGV) All Lead The Pack

The WANT ETF that tracks names from the Consumer Discretionary sector has continued to see success, climbing higher this last week.

They look to have more steam to climb higher based on their MACD, however watch the currently overbought RSI as it may signal that there will be a bit of selling pressure in the near-term.

KRBN, a Global Carbon ETF has been trading on higher than average volume recently, and climbed to new highs for the year.

Again, while their MACD is still bullish, watch their RSI.

At 76, their RSI is still overbought & may indicate a bit of a sell off in the near-term as it begins to establish a new price range, where a better entry price may be possible.

WUGI, an ETF that contains names that are related to 5G & the future of the economy has also been climbing higher recently, although somewhat stalled out this week.

While their RSI was overbought prior & has now dropped back below the 70 level (highly overbought), there may be a bit of a drop in the near-term judging by their MACD.

Their volume has been very light compared to the rest of the year’s average.

Another area to keep an eye on is the growth names within the Russell 1000 index.

RWGV is an ETF that tracks these names, and has seen growth this year.

Their RSI is also high; at 74.7 signaling that they are currently overbought & may have some selling in the near-future.

However, their MACD is still bullish, after coming near a bearish crossover last week.

China (GXC), BioTech (LABU), Dividend Revenue (RDIV) & Global Infrastructure (GII) Stocks & ETFs Are All Lagging The Rest Of The Pack

It’s no surprise that companies in China are not being viewed favorably in the last few months.

GXC, the SPDR S&P China ETF has continued to struggle, having another bearish MACD crossover last week.

With a relatively neutral RSI, this downtrend may continue in the near-term.

LABU, an ETF that tracks biotech names has continued to fall, on higher than average volume.

Their RSI is approaching the oversold level, but their moving averages suggest that there is more pain to come in the near-future.

RDIV is another ETF that’s moving averages seem to suggest more trouble in the near-future.

Last week they had a bearish MACD crossover, and with a neutral RSI of 46 there looks to be more losses to come in the near-term.

Note too though that their volume has been very low recently compared to the rest of the year’s average.

However, they do offer a 4.77% dividend yield, which can provide some protection & cushion against losses.

GII, an ETF that tracks global infrastructure focused stocks & securities has also seen recent troubles, with a gap down on Friday that went below their 50 day moving average.

While their RSI is near the oversold level, their MACD is currently very bearish.

GII has also been trading on weaker than average volume recently.

Tying It All Together

There are still more earnings calls to come this week, there should be plenty of interesting swings in the markets.

With indexes near or at highs & showing overbought conditions, there should be some selling action in the near-term as traders take profits & reposition themselves for the new year.

However, the week will be shorter in observance of the Thanksgiving holiday in the US, which is something to take note of.

*** I DO NOT OWN SHARES OR OPTIONS FOR ANY OF THE NAMES LISTED ABOVE ***