BTAL ETF seeks to provide a consistent negative beta exposure to the US equity market. The ETF takes long positions in low beta US equities and short positions in high beta US equities on a dollar-neutral basis.
The goal of the strategy is to be market-neutral, meaning it aims to provide positive returns irrespective of the direction of the broader market. When the market is declining, the short position in high beta ETFs is expected to benefit, and when the market is flat or mildly bullish, the long position in low beta ETFs may provide a cushion or steady returns.
Technically, the ETF appears to be developing a falling wedge pattern (see the black converging trendlines as well as the insert on the main chart), making it an attractive investment option. The pattern manifests when there is a battle between bulls and bears, with bulls gradually gaining ground. As the price movements become more constrained in the wedge, pressure builds that could lead to a bullish breakout.
The ETF is trading below, its 200-day simple moving average (SMA) of ~$20.
Fading downside momentum, according to the MACD histogram, as well as sidewards movement of the OBV indicator, supports a bullish stance.
Share Information
| Share code | BTAL |
|---|---|
| Industry | ETF's |
| Market Capital (USD) | 0.22 billion |
| One year total return | 4.19% |
| Return year-to-date | -9.48% |
| Current price (USD) | 19.20 |
| 52 Week high (USD) | 21.64 |
| 52 Week low (USD) | 17.70 |
| Financial year end | - |
| Closing paragraph | We expect moderate price volatility going forward. |
Buy/Sell Rationale
Technical Analysis:
Fundamental view:
| Share Name and position |
FOXF - Buy (Continue to hold) |
IEX - Buy (Continue to hold) |
VOE - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 105.69 | 212.62 | 137.42 |
| Current | 110.2 | 220.59 | 138.16 |
| Movement | 4.3% | 3.7% | 0.5% |
| Summary text |
A price making higher highs and higher lows remains of interest. The stock is trading just above its 200-day and -week simple moving averages. Upside momentum has halted again, which is a concern.
Our profit target is $126 with a trailing stop-loss of $102. Exit the position around 6 October 2023. |
The price remains above key support and continues to test the 200-day simple moving average. Upside momentum has halted, which is a concern.
Our profit target is $240 with a trailing stop-loss of $210.80. Exit the position around 20 October 2023. |
The ETF is in a symmetrical triangle pattern and trade continues above the 200-day simple moving average. Fading upside momentum is still a concern.
Our profit target is $148 with a stop-loss of $134. Exit the position around 15 September 2023. |
| Share Name and position |
FCX - Buy (Continue to hold) |
SBUX - Buy (Continue to hold) |
KO - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 39.71 | 102.92 | 61.64 |
| Current | 39.85 | 101.66 | 60.47 |
| Movement | 0.4% | -1.2% | -1.9% |
| Summary text |
Price symmetry remains of interest. The stock is trading above its 200-day simple moving average. Upside momentum is fading, and this is a concern.
Our profit target is $47 with a trailing stop-loss at $37. Exit the position around 18 October 2023. |
The price is in a symmetrical triangle pattern. Trading continues to test the 200-day simple moving average. Fading downside momentum supports the bullish trend.
Our profit target is $114 with a trailing stop-loss of $99. Exit the position around 29 November 2023. |
Trading remains in a symmetrical triangle pattern and the stock has dipped below its 200-day simple moving average. Emerging downside momentum is a concern.
Our profit target is $71 with a trailing stop-loss of $58. Exit the position around 15 March 2024. |
