BABA
China Market Finally Bottomed After a Prolonged Panic Sell Off?Due to the repeated news of Chinese government's crackdown on the monopolistic practices of Chinese Technology companies that worried some investors on the long term impact of investing in these companies and the we have seen a prolonged sell off by both retailers and institutional investors in many of the Chinese Tech companies namely Alibaba ( HKEX:9988 and Tencent HKEX:700 . However, the good news is that the impact of these policies are likely to have minimal impact on the business model of these companies targeted and also from the technical aspect, we have seen TVC:HSI hitting a confluence horizontal and long term trendline support line with bullish candlesticks formed over the past few trading days. Moreover, signs of capitulation can be seen in big constituents of HSI such as NYSE:BABA , thus further suggesting that a reversal might be around the corner. In retrospect, many of these great Chinese companies are very undervalued served as a great opportunity for investors to hop on and catch some great profits ahead.
Watch List Alert: Alibaba Group Holdings (NYSE: $BABA)Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a social commerce platform; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; and Tmall Global and Kaola, which are import e-commerce platforms. It also operates Lingshoutong that connects FMCG manufacturers and their distributors to small retailers; Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, the company offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, it provides elastic computing, database, storage, virtualization network, large-scale computing, security, management and application, big data analytics, machine learning platform, and Internet of Things services. Additionally, the company operates Youku, an online video platform; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency app; and Tmall Genie, an AI-enabled smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.
Why BABA will not go down more, at least in the near future!BABA experienced more than 52% correction in the past trading year!
Between August 16-23, we see a huge increase in the trading volume, and so far August 2021 has had the highest trading volume since November 2014.
BABA's short interest after an 11% decrease is 1.69%, which means no one thinks BABA is a short opportunity at this price!
I believe it could easily experience a rebound to 180-200, however trade war can cause stagnation, but a more bearish case is very unlikely..!
Great R/R for BABA short term, but could fall another 10-20%.Hey friends. One of my friends (and 100% a 'boomer in the making') was looking for some info on BABA. His strategy is always "BTFD" , and he holds very the long term.
Looking at $BABA through a bullish perspective, it's in a decent oversold condition with a defined risk/reward. The weekly candle is a bullish reversal 'doji', and we're below the forming descending wedge (a typical "wave e"), plus the RSI is crazy oversold (weekly RSi has only been this low once or twice). Depending on what happens on Monday morning, you can buy at market open around 161 (likely no higher than 164), with a defined stop below the low of 152.39.
Looking at $BABA through a bearish perspective, you can see that China's S&P equivalent (the CSI 300 Index, bottom chart) is also weak, which means China ain't so hot right now. We're below all major moving averages, and our MACD is showing no sign of a reversal. Keltner channels are all trending down.
From a macro perspective, there's a lot of leftover tension from the trade war, and long term they're looking to do CNYUSD currency swaps (that is, swap all reserves and holdings from global USD to Chinese CNY, which will ease their reliance and dependency on playing nice with the US). I'm no expert, but they'll likely be selling USD and buying CNY, forcing the CNY up from increased demand. Therefore, because most of the CSI 300 companies 'holders' are denominated in CNY (I can't imagine many foreign holders of these companies), the companies will lose relative 'share value' to CNY. A temporary drop in China's stock market is a small price to pay for international autonomy and a shot at being the global reserve currency. Long term, they're looking to replace all trade partners with domestic solutions, so maybe my boomer-buddy has the best BTFD moment in history! There's actually a great Market Huddle Episode on China-USA Trade relations and the Triffin Paradox here
Below, here's the CNYUSD. Does that look bullish? If it does, their stock market is about to take a wee-plunge.
Good Luck!
NTES - Bullish on earningsNTES is a China tech company that provides online gaming services. All the china stocks are risky right now with their gov't sanctions, but they provide a good valuation. Some are down over 20-30% in last 3 months. Earnings is Aug 31 aftermarket and I think they will beat eps and revenue. Options - There are over 28000 calls OI for sept 17 exp, 19000 puts OI. Earnings Trend - PDD, JD. SE
NASDAQ Golden Dragon: falling knifeI am sorry to draw the attention of all those who are not indifferent
$ BABA $ BIDU $ TAL $ NIO $ LI $ VIPS $ JD $ PDD
From a technical point of view, the potential for a fall of 30 points, this is the middle of multi-year accumulation at the end of 2013-2017
Also, the level I set in the middle of the range acted as support twice: in 2019 and 2020
The largest cluster in the volume profile coincides with the set level
The rise, as well as the fall, were very exponential and were accompanied by high momentum, so the likelihood of a return to this zone is high. It may well be an impulse that returns to its starting point. We are seeing a steep drop and a gradual increase in trading volumes, so do not rush to buy off the bottom. China will provide excellent opportunities in the future, all that is needed now is to wait for the asset to slow down its decline and go into the accumulation
JD vs BABA . Is BABA "Cheap" now ? Though not in any of these names , I have been watching JD and BABA lately and It seems like JD is the better buy of the two . I think that both names have good potential to produce a profit for the long trader and I have no plans to trade this as a beta hedge but I think it really shows us who is boss, as of late, in the chinese e-commerce market . Especially evident when comparing the charts of each too . BABA is in a confirmed downtrend and put in lower lows while JD formed more of a range .
Also, JD is the up and coming and coming stock of the two and I see more potential for JD to be a super performer in the coming years of the two .
Once again, no plans to beta hedge this but I think I will watch JD for long opportunities and I am betting that JD continues to outperform BABA.
For my style I will wait for JD to break into new highs to get active but I do like the company very much at this point .
$SOHU: China Come Back Poster Child?SOHU has been showing terrific relative strength against a basket of other Chinese ADR's and the KWEB etf. Last quarter was a 400% earnings upside surprise, and technically speaking, you could look at this as a large cup and handle pattern trying to break to the up side. At symmetry here, could this be a tremendous value buy? Or will the CCP keep up the antics? Stay tuned!
$BABA | Model Identifies Buy OpportunityHello Traders,
The targets on this chart are produced by a proprietary model. Data is fed into the model, the output is the targets you see on the chart.
In light of recent fundamentals $BABA and a slew of Chinese Stocks have taken a nose dive. My proprietary model is pointing in the opposite direction.
This will be a test for the model.