CHINA BIG DIP analysis + TENCENT (e-commerce, fintech, gaming)Hello Traders, Investors and Speculants :),
You probably heard about Tencent holdings investment group.: These days you can hear some Fundamental analysis about Naspers / Prosus tranfer (spin-off) from South Africa exchange to Amsterdam.
Many super-investors (value investors) like Guy Spier / Mohnish Pabrai are most likely increasing their position in Tencent directly or via Prosus shares.
++ others are buying CHina stocks // Charlie Munger = BABA, Ray Dalio increasing positions, Nitin Saigal fully invested in China ...).
So Why would you need another analysis if they are alredy buying?
This thread will be purely my opinion about oportunity for Buying into Tencent and many China located gigants + why I think, we are near the temporary bottom of correction = of Wave A !!
If you look at biggest China companies, almost all of them reached All-Time-High from November 2020 till February 2020 = Potential TOP of China growth-tech bubble.
(this time it could be e-commerce, finTech, Gaming companies + Crypto of course...)
Lets take a look at few of them, this thread will continue in comments so stay tuned.
TENCENT as one of biggest Chinese companies (acting more like ETF based on around 700 holdings).
AliBABA
KWEB - China internet ETF
MEITUAN (Btw biggest Tencent position)
SEA Limited:
NIO:
Whats interesting even some Non-China Fintech companies reached their ATH around this time like StoneCo (Brazil).:
SOuth America - Mercado Libre - MELI:
While in the US, Covid related restrictions and fear of investors was probably slightly delayed by several Months:
is still near thSPX, AMZN, and other FAANG ggants are still near ATHs, some of the FinTech and e-commerce companies start to fall.
PAYPAL:
SQuare:
Conclusion + Investment Thesis:
1) Be very carefull with catching the falling knife. Wait for pure Buy signals and signals of reversal at least at 3D/1W charts. Also consider buying only with very good RRRatio + clear setup.
2) China could be very good oportunity for short term BUY-LONG setups when you will be able to count all subwaves of Wave A but still be very carefull. (Around 1-3 months from now).
3) US and western - world conutries will probably continue to fall in dozens of % DOWN. (US is delayed, it could take around 3-6 months to reach bottom and point of maximum fear of retail and small VC investors.)
Patience folks, patience.
