The broad market setting stays bearish, however one group stood out in early August and continues to face out. The Photo voltaic Vitality ETF (TAN) was featured on August 1st because the Pattern Composite turned bullish and clear power was featured as an rising theme on August fifth. Clear power ETFs are bucking the bear market and we’ll have a look at the Alps Clear Vitality ETF (ACES) right this moment.
First, let’s examine the development sign and rating desk, which covers 274 ETFs and is accessible to subscribers at TrendInvestorPro. ACES sits on the prime with a StochClose worth of 94.1, which implies it’s near a six month excessive as a result of StochClose has a 125-day lookback. There are three different clean-energy ETFs within the prime six (QCLN, TAN and ICLN). The Pattern Composite triggered bullish 35 days in the past for ACES and QCLN, 36 days in the past for ICLN and 50 days in the past for TAN (inexperienced shading on sign days column).
The following chart exhibits ACES with the Pattern Composite turning constructive in late July. This indicator aggregates development alerts in 5 trend-following indicators and is a part of the TIP Indicator Edge Plugin for StockCharts ACP. There was additionally a breakout on the value chart because the ETF gapped above the June excessive. ACES then shaped a small falling wedge into September and that is considered as a bullish continuation sample. It’s a brief correction after the July-August surge and the wedge breakout is bullish.
The blue line on the chart is the ATR Trailing Cease, which is about 6 ATR(22) values under the very best shut for the reason that Pattern Composite turned constructive. As a trailing cease, it rises when costs rise and flatlines when costs fall. I view ACES as firmly bullish so long as this cease holds and the Pattern Composite stays constructive.
StochClose, the Pattern Composite, ATR Trailing Cease and eight different indicators are a part of the TIP Indicator Edge Plugin for StockCharts ACP. Click on right here to study extra and take your evaluation course of to the following stage.
TrendInvestoPro stays very selective in relation to stock-based ETFs as a result of the Composite Breadth Mannequin has been bearish since April eleventh and the overwhelming majority of ETFs are in downtrends. Subscribers get entry to the breadth mannequin, ETF sign/rating desk, twice-weekly stories, complete video and premium methods. Click on right here for speedy entry.
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic strategy of figuring out development, discovering alerts inside the development, and setting key worth ranges has made him an esteemed market technician. Arthur has written articles for quite a few monetary publications together with Barrons and Shares & Commodities Journal. Along with his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Enterprise College at Metropolis College in London.