Risk Appetite is Returning 🌤️ The Morning Print

Good morning! 

ARKK Innovation (ARKK) is pressing higher after spending several weeks consolidating following its failed head-and-shoulders breakdown.

Let's take a look.

Speculative growth stocks are starting to rip again, and few gauges capture that trade better than the ARKK Innovation ETF.

Back in early April, ARKK looked poised for a major breakdown from its multi-month top.

Instead, we saw a bullish momentum divergence as price undercut its prior lows, setting the stage for a sharp reversal higher.

After several weeks digesting those gains, ARKK is pushing higher one again, highlighted by yesterday’s strong bullish candle.

The ETF still has roughly 15% upside before it gets back to its former highs from October of last year, but the recent price action is an encouraging start.

Bottom line: the speculative growth trade is showing signs of life again.