It's one of the most hated markets in the world... For several years, investors have been wary of China. They're worried about the country's growing geopolitical rivalry with the U.S. and its property market crash.

Something Big Just Happened in This Hated Market By Vic Lederman, editorial director, Chaikin Analytics It's one of the most hated markets in the world... For several years, investors have been wary of China. They're worried about the country's growing geopolitical rivalry with the U.S. and its property market crash. Many folks even consider China uninvestable. In fact, JPMorgan Chase (JPM) recently ditched its "buy" recommendation for Chinese stocks. It fears a worsening trade war with the U.S. But a major change for Chinese stocks happened earlier this week. The Chinese government announced a series of measures to help its economy and stock market. And these are strong... Recommended Links: 'A New Surge of Crashes Will Rock the U.S. Stock Market' The man CNBC's Jim Cramer said he would never bet against just issued a dire warning, including a 90-day threat that's coming for U.S. stocks... and how you need to prepare immediately. We recommend you get the facts for yourself. Learn more here. What the Fed's Dramatic Rate Cut Could Mean for Your Money After hiking rates at the fastest pace in modern history, the Federal Reserve has finally changed direction and slashed rates by a whopping 50 basis points. This aggressive move will affect mortgage rates, credit cards, and car loans – but one overlooked corner of the economy is poised to see the biggest impact. Discover how this could change your financial future here. One is a large 50-basis-point ("bps") cut to banks' reserve requirement ratio ("RRR"). This refers to how much in deposits that a bank must keep as reserves and can't lend out to borrowers. That 50-bps cut alone is enough to free up an extra $140 billion-plus in deposits to be lent out. And the Chinese government hinted at a possible additional cut of 25 to 50 bps later this year. The support package also includes a 50-bps cut for average interest rates for existing mortgages. Another measure is a reduction in the minimum downpayment ratio on second mortgages from 25% to 15%. Meanwhile, China went a step further to shore up its stock market... Its central back set up a more than $70 billion "swap facility" that brokers, mutual funds, and insurers would be able to tap to buy up mainland-listed Chinese stocks. It's a huge figure for China's market. And officials said that they could at least double the amount if necessary. Again, these are massive stimulus measures. And Chinese stocks leaped on the news. The country's main SSE Composite Index soared more than 4% on Tuesday. And it has kept moving higher since then. Now, this isn't the first time the Chinese government has tried to help its ailing markets... It has put forth several supportive measures in the past. But they were introduced slowly. And their effects eventually fizzled out. This is the first time the government has introduced a handful of supportive policies with a clear intention of boosting its stock market. It's China's version of quantitative easing. And it's already working to boost confidence in the country's stock market. Of course, we'll have to wait and see if this translates to gains in the real economy... It will take some time before lower rates and smaller downpayments translate to stronger housing demand. Chinese businesses won't immediately take on new loans simply because banks are now able to lend out $140 billion-plus more to potential borrowers. But it is clear that the Chinese government is now getting serious about helping its stock market and economy. However, that doesn't mean it's time to immediately rush into Chinese stocks... In the Power Gauge, we can take a look at Chinese stocks through the KraneShares Bosera MSCI China A 50 Connect Index Fund (KBA). This exchange-traded fund ("ETF") provides exposure to the 50 largest securities in China's mainland markets that can be traded by overseas investors. Take a look at this year-to-date chart of KBA along with some data from the Power Gauge... Right now, KBA gets a "very bearish" rating in our system. And you can see that it has been in "neutral" or "bearish" territory for most of this year. You can also see the big move higher this week after the news on the stimulus measures. However, KBA's Chaikin Money Flow indicator – which measures "smart money" trading activity on Wall Street – has still been weak. Meanwhile, the fund's relative strength versus the S&P 500 Index has also been weak recently.  But given the big developments, it's still worth keeping Chinese stocks on the radar... China has many other tools left at its disposal to stimulate its economy and fire up its stock market. Its government could just be getting started. Again, this group of stocks is still among the most hated in the market. So all it takes is a small shift in sentiment – going from "hated to less hated" – to spark a powerful rally. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.6% 12 16 2 S&P 500 +0.4% 163 284 49 Nasdaq +0.75% 23 59 18 Small Caps +0.52% 571 991 360 Bonds +0.24% Materials +2.07% 2 22 3 — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Materials +2.48% Utilities +2.06% Discretionary +1.72% Information Technology +1.61% Communication +0.64% Industrials +0.39% Staples +0.27% Real Estate -1.23% Financial -1.47% Health Care -1.81% Energy -3.98% *  *  *  * Industry Focus Telecom Services 16 21 1 Over the past 6 months, the Telecom subsector (XTL) has outperformed the S&P 500 by +26.58%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #4 of 21 subsectors and has moved up 3 slots over the past week. Top Stocks NTGR NETGEAR, Inc. FFIV F5, Inc. ANET Arista Networks, Inc *  *  *  * Top Movers Gainers MU +14.73% JBL +11.65% EL +10.01% ALB +9.92% UAL +8.76% Losers SMCI -12.17% FANG -6.46% TRGP -5.94% OKE -5.85% APA -5.78% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises JBL Jabil Inc. Q4 $2.30 Beat by $0.08 COST Costco Wholesale Corporation Q4 $5.15 Beat by $0.07 ACN Accenture plc Q4 $2.79 Beat by $0.02 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at edwardlorilla1986.paxforex@blogger.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.