Good morning! Here's the ETF Daily Trading Digest for Friday, May 8 2020.
What To Watch
All eyes are on the unemployment report and how truly bad it might be. I expect the market to have a relatively muted reaction since much of the expectation is already priced in.
Watch for a bounce in Treasuries today as investors look for safe havens due to job market weakness and the Fed futures market forecast that interest rates could turn negative soon.
3 ETF Trade Ideas For The Week Ahead
Amplify Online Retail ETF (IBUY)
The COVID-19 outbreak could grow online retail, which accounts for about 10-15% of all retail spending, to more than 30% in 2020.
In just the past month, IBUY has gained more than 38%, compared to a 9% gain for the S&P 500, reflecting strong investor interest.
At 31 times earnings, IBUY is very expensive, but momentum is strong and it's back to new all-time highs.
ARK Innovation ETF (ARKK)
ARKK just became the largest (and perhaps best) active equity ETF in the industry.
It has gained 130% over just the past three years thanks to large bets on Tesla, Square and Illumina.
It's now got a nearly 40% allocation to the healthcare space, including exposures to gene therapy and molecular diagnostics.
U.S. Global Jets ETF (JETS)
Investors have been betting big on a rebound in airline stocks.
Assets have grown from $33 million to nearly $600 million as investors try to the buy the dip here.
A potential government bailout could be the catalyst that pushes share prices higher.
- Communication Services
- Small Caps
Defensive assets continue to underperform despite miserable GDP and employment data. Traders seem more focused on the economy reopening, more central bank stimulus and an improving oil market. Gold continues to look attractive longer-term.
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