Daily Market News - 11th Oct 2021

Are We Seeing a Bottom in China?

Let me get it out there.

I will never buy China stocks. It’s just my preference as an investor. I don’t like the risk attached (which is weird because I own Bitcoin and Crypto)… maybe it’s the distrust i have for the Chinese government, maybe it’s the nonsense that accompanies owning the individual names (Luckin Coffee anyone?)… who knows.

But here’s my thoughts (and charts) regardless… I’m asked about them daily, my professional clients and hundreds of my members want to buy them, so let me show what my charts are saying to me.

Some of you will have watched the 9min Analysis I put out at the end of August (I’ve added this below) calling for a possible bottom, and while September was incredibly choppy, the jigsaw pieces look to be coming together, for those of you looking for alpha, it might be a place to do some research and digging around.

Chinese Internet Stocks are front and centre given the moves they make when they move higher and while many of you just won’t pick up on these kind of intricacies within Technical Analysis, the signs are there we could potentially be looking at a tradeable bottom at a time when peak fear (normally a good buying opportunity) is hitting the headlines.

What was it Warren Buffett said… when the time comes to buy, you won’t want to….

There are of course risks…. LOTS of risks, I would never advocate swinging for the fences and putting everything you own into anything, but for me to reconsider my bullish thesis on Chinese Internet, price would need to UNDERCUT the lows and head lower than $44.

KWEB Chart (provided to Members LAST week)

This is the full analysis I put out a few weeks ago for those of you that like that kinda thing.

As you all know, I don’t use the magical hindsight indicator around here, it’s why my clients and members stick around year after year.

Our Weekend Premium Analysis went out to members on Saturday with charts for individual names that are setting up nicely.

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