Calculating the Components: FTLS May Have a Value of $81
ETF Performance Analysis: The First Trust Long/Short Equity ETF (FTLS) has an implied analyst target price of $80.67, indicating a potential upside of 12.93% from its current trading price of $71.43.
Notable Holdings: Key underlying holdings of FTLS, such as American Superconductor Corp. (AMSC), Dow Inc. (DOW), and Impinj Inc. (PI), show significant upside potential, with target prices suggesting increases of over 100% for AMSC and DOW, and nearly 59% for PI.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets could lead to downgrades if they are based on outdated information.
Investor Research Importance: Investors are encouraged to conduct further research to assess the validity of analyst targets in light of recent company and industry developments.
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- Price Range Analysis: The SPYD ETF has a 52-week low of $37.92 and a high of $48.38, with the latest trade at $48.26, indicating stability near its high point, which aids investors in assessing market performance.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to identify market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: ETFs trade like stocks, with investors buying and selling 'units' that can be created or destroyed based on demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows (new units created) or outflows (old units destroyed), as these liquidity shifts can affect the performance of individual stocks held within the ETFs.
- Golden Cross Signal: Dow stock has just printed a Golden Cross, with the 50-day moving average rising above the 200-day average, indicating that selling pressure is easing and a new uptrend is likely forming, reflecting strong market demand for the stock.
- Strong Technical Indicators: The current price is above the 20-, 50-, and 200-day averages, showcasing bull control, while the RSI hovers in the low 70s, signaling robust demand, and the MACD indicator is widening to the upside, further supporting the upward trend.
- Restructuring Plan Impact: Dow's launch of the “Transform to Outperform” initiative on January 29 involves cutting 4,500 jobs, targeting $2 billion in near-term EBITDA gains, and embedding AI across production and supply chains, aimed at navigating a tougher chemicals cycle.
- Investor Focus: If Dow can maintain above $30 and keep costs declining faster than demand, the Golden Cross could represent more than just a chart pattern; it may signal the market's anticipation of a turnaround and potential stock re-rating.
- Uber's Strategic Acquisition: On February 9, Uber announced its acquisition of Getir's delivery portfolio in Turkey, which includes food, grocery, retail, and water delivery services, enhancing Uber's competitive edge and service offerings in the Turkish market.
- Oracle Rating Upgrade: DA Davidson analyst Gil Luria upgraded Oracle's rating from Neutral to Buy while maintaining a $180 price target, reflecting market confidence in Oracle's growth potential moving forward.
- Dow's Earnings Beat: Dow reported an adjusted loss of 34 cents per share for Q4 on January 29, surpassing Wall Street's projected loss of 46 cents, indicating the company's resilience amid challenging market conditions.
- Goldman's AI Collaboration: On February 6, Goldman Sachs announced its collaboration with AI startup Anthropic to develop AI agents for automating key banking functions, showcasing its forward-looking strategy in the fintech sector.
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
- Historic Milestone: The Dow Jones Industrial Average surpassed 50,000 for the first time in 2026, marking a significant achievement since its inception in 1896, reflecting sustained investor confidence amid economic fluctuations.
- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
- Transportation Shares Movement: Recent activity in transportation stocks indicates potential for continued stock market rally despite recent downturns.
- Market Resilience: The resilience of transportation shares suggests that investor confidence may remain strong, supporting overall market performance.
- Stock Market Dynamics: The interplay between transportation stocks and broader market trends highlights the importance of sector performance in stock market recovery.
- Investor Sentiment: Positive movements in specific sectors like transportation can influence overall investor sentiment and market outlook.










