China's Dragon Awakens: This Time Is Different (Technical Analysis)

Sep. 27, 2024 3:48 PM ETFXI, KWEB, BABA, TCEHY, BABAF, TCTZF1 Comment
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The Hermit Trader
3.37K Followers
(4min)

Summary

  • China stocks are extremely under-owned and sentiment is dire. They have the potential to embark on a multi-month bull run.
  • The recent China stimulus sparked a big rally in indices and stocks. While prior interventions fell flat quickly, this time looks different.
  • We could be looking at a generational buying opportunity in China stocks, with many stocks having the potential to double or triple in value.

Two Chinese dragons for Chinese new year

Videowok_art

The majority of market participants must have been surprised by the recent resurgence in Chinese stocks.

The catalyst was a stimulus package issued by the Chinese government worth an estimated CNY 2 trillion (or USD 284 billion).

While definitely

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KWEB, FXI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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