| | | | Too Soon? I'm Still Waiting on China...
Author: Corey Snyder, Publisher
"Winning with stocks requires only patience, not foresight."
- Jeremy Siegel
Now is not the time...
That's essentially what I picked up from a handful of conversations with fellow traders… and just about every technical breakdown that I could toss on the charts.
There's no question that the potential lying ahead could be life changing.
You see, I've been pounding the table about Alibaba for some time — it's down 44.35% from the highs — and I plan on making it one of my biggest positions when the smoke clears…
...if it ever does.
This is polarizing to some.
It's mainly because Alibaba has been viewed as the flagship Chinese tech company, although it's been mired in controversy over the last year.
There's also the growing bearish sentiment around China...
After all, it's unlikely that you and I will see encouraging news about Chinese equities anytime soon…
(Well, Charlie Munger did bump up his stake in Alibaba by over 82%...)
The supporting arguments for a bear thesis are legion.
For one, my colleague, Dr. Moors, points out the controversy surrounding China Evergrande Group, which has found itself clinging to the tightrope rather than walking it…
But there's also the unpredictable nature of the CCP…
...the unrelenting antitrust probes into Chinese companies…
...a clear downtrend in the Hang Seng and other composite indices...
The list goes on.
But this affects the entirety of the Chinese markets — not just the recent bludgeoning of the education, real estate, and tech industries...
Even the liquor companies got hammered.
(You know what I mean.)
Take Kweichow Moutai Co., Ltd., for instance.
This is one of the strongest spirits companies in China.
Not to mention, it's the largest of its kind in the entire world. But it fell from a 52-week high to a 52-week low in a matter of six months…
And according to the numbers from financial research firm, Wind, Kweichow Moutai is a favorite among foreign investors…
Still, the price action in 2021 has been abysmal, creating a cloud of disenchantment over the company's stock.
(Full circle: Investors could increase the company's sales by drinking their Kweichow Moutai losses away.)
This air of uncertainty is permeating the market…
It's also why you should begin looking closer.
Blood in the Streets
You've likely heard the following quote from Baron Rothschild:
"Buy when there is blood in the streets."
Whether it was said in the 18th century or not matters little…
Some wisdom is timeless.
But it matters the most when the hive mind is saying otherwise.
An example...
Imagine selling Tesla (TSLA) in March of 2020 instead of buying more.
I know some who did… because that's what everyone told them to do.
Others sold everything...
Let this be a lesson.
The COVID-19 crash was one of the bloodiest times in market history.
It also encouraged the masses to invest, to take advantage of the "easy" trade…
Many of those who did became millionaires.
These opportunities don't come often…
Instead, markets move in more simplified cycles.
And if one is climbing higher, there's a good chance that another one somewhere is moving lower...
This is not the same.
Crashes and steep downturns are different from your average market cycle.
They also offer a way to go for the gusto...
Now, it goes without saying that I'm not recommending that anyone lie in bed at night with their fingers crossed, hoping the market tanks, be it here or elsewhere...
The people — not just investors — take the brunt of it.
I'm simply highlighting the fact that these occasional plummets will happen...
This presents a wide-open window of opportunity.
Of course, the blood in the street over in China isn't an automatic "buy" signal...
Far from it, in fact.
And the "when" depends on the investor…
But at the very least, it's a signal to start paying attention. |
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In this episode Chris continues with his analysis of market conditions that are likely unfamiliar to most traders with less than 3 years of experience.
Let Chris help you take the guesswork out of your options trading with his clear explanations backed by 20 years of market experience.
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| | | FINAL PRINTS: The Major Indices Wrap-Up |
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| Index
S&P 500
Dow Jones
NASDAQ
Russell 2000
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| Weekly +/-
+73.53
+382.26
+192.86
+25.62 |
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| % Change
+1.64%
+1.08%
+1.29%
+1.13% |
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| Close
4,544.90
35,677.02
15,090.20
2,291.27
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| % YTD
+21.00%
+16.57%
+17.08%
+16.02%
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| | | MARKET WHISPERS: The Weekend Scoop
- More Pump With "Donny T" - Shares of blank-check company Digital World Acquisition Corp. (DWAC), set to merge with former President Donald Trump's Trump Media & Technology Group, continued its incredible climb on Friday, gaining as much as 284.61% at its session high. Although many looked to WallStreetBets, the community has made it a strict rule that SPAC discussions aren't allowed. Instead, Reddit users have chosen to use the mango emoji as a substitution.
- Elon Says He Holds No Shiba Inu - Doesn't Matter. - Crypto coin Shiba Inu (SHIB) rocketed upwards to new all-time highs over the weekend despite lacking an endorsement from Tesla's (TSLA) Elon Musk. When asked about his holdings, Musk responded to a user on Twitter (TWTR) that he held "None." Shiba Inu gained anyway and according to Bloomberg, the coin's weekend rise makes it the 11th largest by market cap.
- Bold Move: Terraform Labs Sues SEC - The tables have turned and instead of the SEC coming down hard on cryptocurrency, Terraform Labs co-founder Do Kwon announced that he and his company are countering the SEC's effort to subpoena the company over its Mirror Protocol and suing. The DeFi project allows traders the ability to invest in assets that follow cash equities rather than buying stocks directly, which the SEC regards as unregistered securities. Kwon stated that he and the company plan to dispute the SEC's claims, but will be suing the regulator over public intimidation and breach of confidentiality by serving the subpoenas at a public conference. This should end well.
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| | | | | Did you miss Options Coach Chris Hood's landmark event? Chris does a deep dive into his cornerstone strategy that has been paying him every week for years...
Click below to watch now.
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| | | HIT OR MISS: Who's on Deck for Earnings
- Monday, October 25th - Otis Worldwide Corporation (OTIS), Lennox International (LII), Kimberly-Clark Corp. (KMB), Bank of Hawaii (BOH), Bank of Marin Bancorp (BMRC), Dorman Products, Inc. (DORM), HBT Financial, Inc. (HBT), Travelzoo, Inc. (TZOO), Community Bank Systems (CBU), HSBC Holdings (HSBC), Lakeland Financial (LKFN)
- Tuesday, October 26th - United Parcel Service (UPS), General Electric (GE), Lockheed Martin Corp. (LMT), 3M Company (MMM), Hasbro, Inc. (HAS), JetBlue Airways Corp. (JBLU), Raytheon Technologies (RTX), Waste Management Inc. (WM), Sherwin-Williams Co. (SHW), PulteGroup, Inc. (PHM), Corning Inc. (GLW), Eli Lilly & Co. (LLY), Polaris Industries, Inc. (PII), Xerox Corp. (XRX)
- Wednesday, October 27th - Boeing Co. (BA), General Motors Corp. (GM), Coca-Cola Company (KO), McDonalds Corp. (MCD), Spotify Technology (SPOT), Teva Pharmaceutical (TEVA), Harley-Davidson, Inc. (HOG), Bristol-Myers Squibb (BMY), Thermo Fisher Scientific (TMO), Boston Scientific Corp. (BSX), Six Flags Inc. (SIX), Fiserv, Inc. (FISV), Kraft Heinz Co. (KHC), Hilton Worldwide Holdings (HLT), Automatic Data Processing (ADP), Hess Corp. (HES)
- Thursday, October 28th - Shopify Inc. (SHOP), Mastercard, Inc. (MA), Caterpillar, Inc. (CAT), Overstock.com, Inc. (OSTK), Check Point Software (CHKP), Altria Group Inc. (MO), Sirius XM Holdings Inc. (SIRI), 1-800-Flowers.com, Inc. (FLWS), Merck & Co., Inc. (MRK), Daqo New Energy (DQ), Yum! Brands, Inc. (YUM), Newmont Mining Corp. (NEM), Anheuser-Busch (BUD), American Tower Corp. (AMT), WNS Holdings Limited (WNS), Laboratory Corp. of America (LH), American Electric Power (AEP), Northrop Grumman Corp. (NOC)
- Friday, October 29th - Exxon Mobil Corp. (XOM), AbbVie Inc. (ABBV), Chevron Corp. (CVX), Royal Caribbean Cruises (RCL), Colgate-Palmolive Co. (CL), Weyerhaeuser Co. (WY), Phillips 66 (PSX), Shaw Communications (SJR), Huntsman Corp. (HUN), MoneyGram International (MGI), Ruth's Hospitality Group (RUTH), L3Harris Technologies (LHX), Cameco Corp. (CCJ), Newell Brands, Inc.
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| | | | | | | | | | Copyright © 2020 Rogue Investing. All Rights Reserved. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Rogue Investing.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By downloading this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Rogue Investing.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. An InvestPub Company. |
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| HIGH RISK WARNING Trading foreign exchange, stocks, options, or futures on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. RogueInvesting.com provides general advice that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.You should seek advice from an independent financial advisor. Past performance is not necessarily indicative of future success. |
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