China stocks have been in the dumps since topping in February 2021. A combination of increased regulation and outright confiscation of assets from the Chinese government have dissuaded investors from accumulating shares, and in some cases, outright holding them in the first place. But this seems to be changing.
As noted at Leavitt Brothers this past two weeks, China stocks are now in favor. Many bottomed and posted solid gains. Others are setting up in patterns and are itching to break out.
China stocks are now in play. The group carries risk because at any time, news on the government level can derail trends. But at least for now, the message the charts are sending is that the worst case is factored in and higher prices are coming.
Here are numerous China stocks that are acting well. They are “in play.”
Jason Leavitt
Jason, I wouldn’t touch the Chinese stocks with your money.
Jason,
I agree on the TA side the charts look a lot better from where they were. As they say charts don’t lie but people do. I’m not fan of the CCP and wouldn’t be surprised if some kind of Black Swan event occurs. Why not Bitcoin related stocks, Silver, Gold? I’ve been listening to you for years, but not a paid member so perhaps you recommended those stocks. Crazy I’m not big FA guy never was but with all that is going on in the USA out of control inflation, Oil 7 year highs and crisis after crisis its hard to comprehend that the Dow, S&P 500 are on the verge of fresh highs.
Jason,
Great post as always. Seems like the Chinese stocks could rebound soon, but there are a lot of worries in the short term. The market seems to be acting irrational, so I’m keen on buying the YANG (3x Bear China ETF) for a short-term swing trade. The CCP seems to be acting as if everything will be okay. I’d prefer to err on the side of caution and bet against the Chinese companies that have had quite a run up the last few weeks.
https://www.wsj.com/articles/chinese-developer-defaults-pile-up-as-evergrande-contagion-spreads-11634808889
When one looks at CWEB and YINN it makes you think they may have made some sort of bottom.
I agree with the above 2 comments from Tom and Paul