Trade ideas
Chinese tech stocks in the process of capitulationIt has been a rough year here for Chinese stocks but after this recent weeks acceleration lower it feels like we're entering at least some type of short-term capitulation washout.
Volume acceleration
Extension outside multiple time frame Bollinger Bands
Speed of sell off
Definitely a fierce counter-trend trade for more experienced traders that can manage risk and position size appropriately but I'd pay attention to it in this 42 to 46 zone for a reaction.
go long KWEBtrading below its VWAP from the previous high, Emerging Markets expected to outperform this year, KWEB is a good way to focus exposure in China while getting a diverse basket of high growth names that are titans over there with names like Alibaba, Tencent, Pinduoduo, Baidu, and JD.com.
Diversification is key especially as US markets top out in the near term
Similar Patterns in a nutshellAs shown in the 4 charts. Almost all Chinese-related stocks/indexes/funds are tracing what SSE is doing at this moment. However, in this area, I am not too sure if SSE would fall or breakout from the resistance levels. So my suggestion is to keep an eye on the Shanghai Stock Exchange, and that would be a great indicator for traders who are interested on trading US-listed Chinese stocks.
Besides that, I think Baidu, the Chinese Google, is really undervalued at this moment. I am looking to long the ticker, but be careful with SSE.






















