5 Reasons why LI is heading up and EV bear market is over.
There are some clear indications that growth stocks are up for another run, but how far is still unclear. So I'm going to play it safe and not shoot for starts!
First: It all comes down to Nasdaq sensitivity to 10 year bond yield, which is decreasing overtime due to feds doing all they can to reassure the market that inflation is under control, or at least, currently irrelevant. When the interest rates remain constant throughout the year, Nasdaq desensitization began to gain significance. That means even though 10 year yield would most likely hit 2% within the next few months, we are not going to see another round of sell-offs as we saw in February.
Second: Last week, we were expecting another taper tantrum, but that also didn't really happen. That shows, market is gaining confidence for another run.
Third: Let's check out the chart. I waited a few days to see if we're going to rebound and go under the green line, but so far it seems like the break out is happening. It' not going to be pretty but the upward trend is taking it's mini steps toward 33 or beyond.
Fourth: We all forgot about LI beating the earning expectations last quarter, and their sales is only going to increase after the Chinese New Year holiday.
Fifth: The pandemic is wrapping up, the stimulus checks are in, and everyone is going to be excited and will "bet" more on growth stocks like EVs.
At the end, do your own research and don't take my word as a financial advice.
Thanks
First: It all comes down to Nasdaq sensitivity to 10 year bond yield, which is decreasing overtime due to feds doing all they can to reassure the market that inflation is under control, or at least, currently irrelevant. When the interest rates remain constant throughout the year, Nasdaq desensitization began to gain significance. That means even though 10 year yield would most likely hit 2% within the next few months, we are not going to see another round of sell-offs as we saw in February.
Second: Last week, we were expecting another taper tantrum, but that also didn't really happen. That shows, market is gaining confidence for another run.
Third: Let's check out the chart. I waited a few days to see if we're going to rebound and go under the green line, but so far it seems like the break out is happening. It' not going to be pretty but the upward trend is taking it's mini steps toward 33 or beyond.
Fourth: We all forgot about LI beating the earning expectations last quarter, and their sales is only going to increase after the Chinese New Year holiday.
Fifth: The pandemic is wrapping up, the stimulus checks are in, and everyone is going to be excited and will "bet" more on growth stocks like EVs.
At the end, do your own research and don't take my word as a financial advice.
Thanks
Note
this idea will still have a chance if we end up above $25.15 today, otherwise it's obsolete.Note
Well, they're certainly not going to go any higher if they get delisted and considering how messed up Chinese government works, it's not unlikely! I rather stay in cash and make sure these EV Chinese companies can comply with SEC.Trade closed: stop reached
Market Maven: Never Miss a Move.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Market Maven: Never Miss a Move.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.