- By Nikki Yu Gillo, CMT Spinning Tops and Dojis Signal Reversal Candles Prompting a Sell Spinning Tops and Doji candles are classic reversal signals in technical analysis. Spinning tops are […]
Spinning Tops and Dojis Signal Reversal Candles Prompting a Sell
Spinning Tops and Doji candles are classic reversal signals in technical analysis. Spinning tops are small body with long upper and lower wicks signalling indecision between buyers and sellers and often appears at the end of a trend, hinting at a potential reversal. Dojis are candles where the open and close prices are nearly identical indicating market hesitation and after a strong uptrend signals a trend reversal. We are seeing these signs suggesting potential exhaustion or reversal. $ARKK $GDX $SIL $URA $NLR $EEM indicates a broad profit taking move. Growth stocks as a proxy thru $ARKK is showing signs of weakness. $GDX as a proxy for gold miners as proxy for safe haven assets are also printing spinning tops indicating waning momentum. $URA and $NLR match broad weakness in uranium plays and even formed a gravestone doji , a bearish variant indicating a take profit. The Emerging markets index which is largely dependent on China’s outperformance also shows multiple spinning tops prompting for us to lock in profits and sell.
| ETF Name | Ticker | YTD Gain (%) | Focus Area | |
| 1 | VanEck Gold Miners ETF | GDX | 104.64% | Gold |
| 2 | Global X Silver Miners ETF | SIL | 102.93% | Silver |
| 3 | Global X Uranium ETF | URA | 72.86% | Uranium |
| 4 | VanEck Uranium & Nuclear ETF | NLR | 60.66% | Nuclear |
| 5 | ARK Innovation ETF | ARKK | 46.70% | Growth Stocks |
| 6 | iShares MSCI Emerging Markets ETF | EEM | 27.20% | Emerging Markets aka China |
$ARKK Weakness Matters
When ARK Innovation ETF (ARKK) shows waning momentum, it can indeed hint at a broader market top, especially in growth and speculative sectors. ARKK thrives when investors are chasing risk. If it stalls, it suggests risk appetite is fading. ARKK recently printed indecision candles after a strong run, suggesting momentum exhaustion. RSI and MACD are diverging from price—classic signs of a potential reversal. Rallying on declining volume is a red flag. It shows buyers are thinning out. A stall in ARKK often precedes a shift from growth to value or defensives.
$GDX $SIL $URA $NLR $EEM Ripe for Profit Taking
A broad profit-taking move across ETFs like $GDX (Gold Miners), $SIL (Silver Miners), $EEM (Emerging Markets), $URA (Uranium), and $NLR (Nuclear Energy) can signal a critical shift in market sentiment. These ETFs have posted massive YTD gains making them ripe for profit-taking. Technical indicators like Spinning Tops, Dojis, and bearish divergence hint at trend exhaustion.
Nikki Yu Gillo, CMT is a Philippine Chapter Chair of the CMT Association. She has over 20 years of experience working in Wealth Securities Inc. and runs a private investor community called Awesome10X. She can be reached at [email protected]
Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
