Cathie Wood's $ARKK: Risk of Reflexivity

Into the bell, there are many topics to discuss tonight with Members in my full video recap.

However, a main takeaway, of course, centers around the growth selloff. In particular, I would use extreme care in bottom-fishing ARKK and all of Cathie Wood's holdings here--ARKK is below its 200-day moving average (below, yellow line on daily chart) with buyers having lost a major battle apparently at well-defined support going back a few months now. 

Could it be just another shakeout and "BTFD" chance? Sure, that is always in play.

But shorts have been eyeing ARKK and Ms. Wood's holdings for a while now, waiting for weakness to attack. 

George Soros, the billionaire investor, is a major backer of the theory of "reflexivity" in markets, whereby a feedback loop exists which can actually alter reality. And just as we saw reflexivity on the upswing in ARKK for quarters on end, it can cut both ways, too.

I see this as a legitimate risk, at least, especially after Friday's failed bounce in a variety of growth stocks and ARKK holdings.