The dominant force in equity markets right now is the record rotation out of U.S. equities and into international markets.
The biggest losers over the past month? U.S. growth stocks. And at the tail end of that risk spectrum, speculative growth—best represented by ARK Innovation (ARKK)—has taken the hardest hit, dropping 25% and failing to hold its long-term breakout.
We’re closely watching whether this broader rotation out of U.S. stocks sustains in the coming months. If capital starts flowing back into the U.S., ARKK would likely be a major beneficiary.
A successful reclaim of its breakout level would set up a bullish long-term trend—but everything hinges on the international vs. U.S. capital flows.
We broke all of this down in yesterday’s Emergency State of the Markets stream. The All Star Charts team joined the discussion, along with esteemed trader John Netto, who shared his insights on the Fed’s announcement.
