As of 11:51 AM ET June 16, 2021:

• TAN has crossed back above its 50-day moving average of $80.01. Great pullback yesterday; in case you missed it, it still looks good at current levels. The last trade I saw was $81.39.
• WOOD traded in our range earlier this morning with a low of $87.13. There is still time to get on board here; an elevated idea range would be $86.50 - $88.00 for entry. The last trade I saw was $87.80.

Below are the markets we are currently following, in case you missed our email earlier. Please see today’s June 16th publication.

FOMC statement coming at 2:00 PM ET.

To sum up the current viewpoint and opinion:

I have BUY opinions for:

• iShares Trust Russell 2000 ETF (IWM) for an index reconstitution trade. At this time, I would be looking to be long and then exiting upon the actual reconstituted index going into place on June 28, 2021. Buy the rumor, sell the fact type of trade. Buy Pullbacks. For equity-bearish folks, see the IWM/SPY spread idea in the May 27th publication. Always use a stop loss level that caters to your individual risk tolerance.
• Update: 06/16: The IWM shed 0.29% in Tuesday’s session to close at $230.36. It is still well above the $223.36 level when initiating coverage. Opinion: stay long. I think there is still time to get on board here, with the plan being to sell on June 28, 2021. See the May 27th publication.
• Defiance Quantum ETF (QTUM) between $44.00 - $49.50. Update 06/16: QTUM closed at $49.43 on Monday. In case you missed this one, I think there is still time to get on board and will raise the buy idea zone to $44.00 - $49.50. It looks like it wants to break out of its range soon, but could find some sellers at the psychologically important $50 level. Always use a stop loss level that caters to your individual risk tolerance.
• Amplify Transformational Data Sharing ETF (BLOK) between the 200-day moving average and $40.00 200-Day Moving Average is currently $39.49. BLOK has a history of high volatility, so proceed with caution. Always use a stop loss level that caters to your individual risk tolerance. Update 06/16: Patience still. I want to jump on board, but prefer to see how Bitcoin negotiates the $40,000 level. Wait for $40.00 to the 200-Day moving average. Monitoring.
• Invesco MSCI Sustainable Future ETF (ERTH) between $67.76 - $70.82. Always use a stop loss level that caters to your individual risk tolerance. Update 06/16: ERTH closed at $75.70 on Monday in sympathy with a weaker overall equity session ahead of the Fed. Hold longs. Chugging along. If you missed this one, let’s see if we can get a pullback to the 50-day moving average, which currently sits at $74.00. I am liking this one more and more for a long-term holding and will be willing to hold through short-term pullbacks at this time.
• Invesco Exchange-Traded Fund Trust - S&P SmallCap 600 Pure Value ETF (RZV) at the 50-day moving average. Patience and wait for the pullback. Always use a stop loss level that caters to your individual risk tolerance. Update 06/16: RZV 50-day MA is 92.50 as of the close Tuesday. Monitoring.
• iShares Global Timber & Forestry ETF (WOOD) Initial buy idea zone between $79.07 and the 200-day moving average ($79.72 as of 06/15 close). Update 06/16: Given the price action in the lumber futures described in today’s alert, consider an entry into ½ of a normal position size between $86.50 - $87.50. Should it pull back further, we can look to add another ½ position size.
• SPDR S&P 500 ETF (SPY) between $412.26 (61.8% Fibonacci retracement level) and the 50-day moving average ($416.58 as of the close on June 15th). Always use a stop loss level that caters to your individual risk tolerance.
• Invesco Solar ETF (TAN) between the 50-day moving average ($80.32 as of June 14th) and $81.50. Look for an intraday pullback for entry. Update 06/16: We wanted a pullback and we got a big one on Tuesday, with the range being $78.00 - $80.69. Ideally, this was taken advantage of on this pre-Fed meeting day. There could have been some “sell the news” price action with the SEIA report being released yesterday. Although we are below the 50-day MA, I like the previous consolidation and would look to be long at these levels. Always use a stop loss level that caters to your individual risk tolerance.

I have SELL opinions for:

NONE

I have a HOLD opinion for:

• First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID). GRID has traded through our idea range of between $86.91 and $88.17. Update 06/16: GRID closed at $92.06 yesterday, bucking the trend of the overall down day. That is excellent price action. Opinion: hold longs.
• Always use a stop loss level that caters to your individual risk tolerance.

Have a great afternoon!

Thank you,

Rafael Zorabedian
Stock Trading Strategist