QQQ - CHAT: Deja Vu As Selling Intensifies

2024-07-19 00:58:07 ET

Summary

• The CHAT ETF has rallied 20% since mid-July 2023, but faces challenges due to high expense ratio and bearish seasonality.
• With total assets of $202 million, CHAT has underperformed compared to other tech-related index funds like QQQ and XLK.
• The chart tells me that a potential false breakout pattern is in play, suggesting downside momentum and a possible test of $31 support level.

The Roundhill Generative AI & Technology ETF (CHAT) has been up big in the past year. Shares have rallied about 20% since mid-July 2023, and that’s after a significant correction took place from August through much of October last year. Thus, it might seem like I have egg on my face for putting a sell rating on the ETF in late Q2 2023. ...

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