ETF Power Rankings Archives Articles

US sectors have experienced some notable weakness this week as many groups fail to hold their recent breakouts.

While this does a paint a picture that the market environment is transitioning to a choppier period, it is important to view this within the context of the longer-term trends.

Let's take Consumer Discretionary $XLY as an example.

The ETF has just broken to new lows, and the short-term trend has shifted lower.

But when we zoom out, the ETF is actually sitting on top of a significant breakout level. Typically, retests such as these are often met with strong demand.

It's unsurprising to see this weakness early in the year considering the last two years of significant market gains. The third year of bull markets can be more choppy than the preceding two, but longer-term the trends are constructive.

Perhaps the most surprising element of this recent weakness is crypto. While stocks have sold off modestly, crypto is enduring quite a beating. Our Senior Crypto Analyst, Louis Sykes, will be joining Director of Research, Steve Strazza, in an emergency crypto update at midday today.

Growth and large cap factors continue to lead in the green on the US indices table.

Importantly, many indexes have been rejected after testing their most recent highs.

While this isn't a cause for concern, it does suggest that the short-term trend has shifted sideways as many key ETFs are no longer in a period of price discovery.

In these sorts of environments we're always looking for leadership, and that's precisely what retail-expert Jeff Macke is doing. If you want to see his favorite retail stocks, you can get connected by clicking here.

More country ETFs are beginning to climb up the ETF Power Rankings. Beginning 2025, global stocks have actually outperformed the United States.

While this has been a secular downtrend in global relative to the United States, we are entering into a unique market environment of higher interest rates and widening market breadth among differing sectors. While these trends take a long time to reverse, we could be seeing the early stages of a structural reversal in this dynamic.

Just take a look at the ratio of global stocks breaking higher relative to the United States over the last few months.

Do you think this is the beginning of something more serious or will the US begin outperforming once again?

Reach out if you have any thoughts, we'd love to hear them!

Honestly, not much to note here so this will be brief.

The same industry groups continue to lead higher, like Internet $FDN, Cloud $SKYY, Broker Dealers $IAI, and Cyber Security $HACK. Further, the precious metal miners have also transitioned back into leaders.

The same groups are winning. Nothing's changed.

Have a good weekend, folks!

Something that stands out week to week is how persistently green the Ark funds have been in their leadership.

This is a market environment that is rewarding speculative growth companies, and as shown below they are outperforming their alternatives in the same theme/industry. In other words, we're at a point in the cycle where traders are being rewarded for adopting higher risk through less established stocks.

And it's this market environment that is greatly rewarding our Breakout Multiplier trades.

Our three most hottest trades in recent weeks have been an 18x in $HIMS, an 11x in $EH, and an 8x in $PDD.

These are monster gains.

If you want the next alert, we have a 40% expiring today.

Both the cap and equal weight communication ETFs top the ranking across the sectors.

Communications has been tremendously strong and has just broken to new all time highs.

Financials $XLF and Technology $XLK also just hit all time highs.

The environment is rewarding owners of stocks. And another strategy that's being rewarded is our Breakout Multiplier. We just hit a 14x trade in four weeks in this market environment.

Want access to the next trade? You can do so by clicking here.

Large Cap Growth $IWF remains a dominant factor here as stocks close in on all time highs.

But it's not just a large cap story; indeed Small Cap Growth $IWO remains at new highs relative to Small Cap Value $IWN.

So long as this breakout holds, then the bias leans toward growth continuing to outperform value.

If growth keeps outperforming, the biggest winner could be crypto. While the asset class just sold off hard, there is a significant catch up trade forming right now.

To see which tokens our Senior Crypto Analyst, Louis Sykes, is loading up on, you can watch the replay of when he went live here.

Something we've noted in recent weeks is how the United States is falling down the list. Unsuspectedly, we think this is actually rather bullish.

This is because American equities aren't weak - quite the opposite! They're trading at all time highs.

Instead, we're seeing more countries beginning to participate. This points to a growing number of opportunities forming outside the United States; this widening of global breadth is bullish from a macro perspective and suggests this is a global trend, not just a domestic one.

Quantifying this, while the US is still in the top half of the power rankings table, its position has been falling for many weeks now.

Does the US fall into that red zone?

We'd love to hear your thoughts on this one. Reach out if you have any thoughts.

Stocks are at all time highs.

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The same industry groups are continuing to lead, as pictured by the big block of green on our table. This once again points to the efficacy of erring on the side of relative strength; when an ETF flips green it has a tendency to stay green.

Interestingly, silver and gold miners have migrated higher on the table.

Zooming out, Silver looks to be completing a long-term breakout and catching higher to Gold.

This is clearly a significant tailwind for these ETFs.

Notice how green the top section of the thematics table has been.

The same themes continue to dominate; crypto stocks, speculative tech, gaming etc. China growth is also beginning to appear on this list of predominant themes.

While a large portion of Ark's funds are ranking green on our table, one notable exception is Ark's Genomic ETF $ARKG. Interestingly, it's beginning to transition to a lighter shade of red.

Volatility in the ETF is trading at multi-year lows, which could suggest an explosive move is around the corner.

This is an ETF that's on our radar, especially if it breaks to new highs.

Again, we keep pointing to how many different sectors there are showing relative strength and inhabiting the top area of our sector power rankings.

This points to a wide set of sectors participating, which is positive to see.

Noticeably, Large Cap Communications $XLC looks fantastic, breaking to new all time highs. So long as XLC is above the prior highs near 102, the bias is to the upside.

Noticeably, Large Cap Growth $IWF remains strong on the list of US indices while Small Cap Value $IWN struggles.

Taking the ratio between the two, you can clearly see IWF consolidating right beneath all time highs relative to IWN. Trends have a tendency to persist and this is a chart that is setup to continue working higher.