Why would it hold? BAIDU Big LevelChina stocks have been beaten up in recent years as the US equities leave them in their wake.
From hearing NVDA is larger than the entire china equity market, to China will always be in a bear market…are we finally into enough of support to see a material rally?
BIDU is hitting a monthly support . This also happens as the US markets could be running into a distribution phase.
Will the US Dollar staying below $102 help this emerging market company?
CWEB
YINN & YANG Market Cycles and Ratios YINN LONG nowThis weekly chart of the YANG /YINN ratio explains the rationale of the demonstration of the market cycle over the period of a few years as it relates to taking a swing trade in one or the
other and finding the likely pivot points based on resistance and support as static levels or
importance. Dynamic levels using an anchored VWAP and also a Bollinger Band are used to
support analysis and finding pivot points of importance. This is meant to be a methodology of
decreasing risk while optimizing reward. The same methodology could be deployed onto
a shorter time frame of 120 minute time frame to zigzag more often with greater precision
and potentially achieving greater profits over a given time interval. An optimal reversal on the high side is a confluence of the horizontal resistance /supply area with the upper Bollinger Band and the uppermost of the anchor VWAP bands.
YANG ( a 3X leveraged inverse China megacap ETF ) LONGYANG on a 240 minute chart had a reverse head and shoulders pattern last summer. Price rose
over the neckline in November and hit an increased trend angle at that time. With a set of
VWAP bands anchored to the neckline cross, TANG had pulled back twice to the mean VWAP
where it found support, the latter of which was this past week. While price is currently at
15.5, I could reasonably forecast another rise to the second upper VWAP bandline at 18.00 or
about 16% upside. Price rose more than 4% today and 20% YTD for January.
Fundamentally, China is in a recession. Additionally, the terror and tension in the Red Sea
has increased shipping costs and diminished shipping volumes through the Suez Canal a
a major gateway to the Eurozone markets or even Western Russia. The CCP has pleaded directly
to Iran about this as the whole situation is worsening the China economy ( among others)
The idea of China launching a gold standard currency seems to be out of the news at least for
now. What is still on the table is Chinese interests in Taiwanese reunification. Any military
action would basically flush Chinese stocks into nothingness because a trade war would ensue
if not WW III. This lingering in at background is a drag on the China stocks.
I see YANG as a safe bet now with an entry just above VWAP with a stop loss above it
and 18.00 for the target.
YANG China Leveraged Bearish LONGYANG benefits when the China factories slow down and the economy stagnates
which is the present situation. The weekly chart shows YANG at its highest before
and after covid in 2019-2020. The volume profile shows over the 3+ years most shares
have traded at the present price levels. Price is rising above the POC line of the
volume profile and approaching the long term mean VWAP. The RS indicator shows
sideways strength movement in the mid-ranges. The MACD is curling upward over
a low amplitude histogram. The Asexome Oscillator is sideways. Overall, I will place a
long trade here and then supplement it with an add when the trend direction is stronger
and the Average Directional Index gains amplitude.
Is JD a Chinese economy equity setting up a reversal?JD on the long term weekly chart appears to be in a descending wedge pattern which
would generate a bias for a breakout upside. Price is now supported by the one standard
deviation line below the VWAP bands anchored to 2019. The analysis of the ultralong term
volume profile is that the Point of Control is just below price and that the vast majority of
trading volume has been above the current price. I can readily presume that JD is at or
near a bottom and most certainly the 1, 2, and 3 year lows. Analysis on higher time frames
such as the weekly are more likely to be accurate with good signals. On the MACD signals
have crossed in mid-May and now ascending in parallel toward the zero line while price
is bouncing around at what I will call the bottom. Said another way, the MACD is showing
bullish divergence. The upside here over a long term could be as much as 250% and much
much more with a long expiration options contract. I will open a long trade here in
a small position with a stop loss below the POC line and DTA into it over time whenever there
is a pivot low on the weekly chart. I am confident that the Cinese economy with supposedly
zero inflation will be an excellent backdrop for Chinese stocks to run higher in due time.
Chinese ETF Possible HUGE Move!Watch NASDAQ:BIDU NYSE:TME AMEX:CWEB NYSE:BABA NASDAQ:NTES NASDAQ:PDD . Most are breaking out
Scoop up some strong ones!!
Reasoning
Whole Industry is moving!
Divergence between Composite and RSI on 4D chart
Consolidation seems done
Correction is not overextended
Multiple Bullish Days
Always try to use 2 timeframes
My Would Be Trade Plan
- Risk about 1.5ATR and aim to ride up to 4.5ATR (1:3)
- Raise stop once Trade moves 2ATR in your direction
- Add on new highs after a pullback. (Then raise stop to keep original risk and also do not modify the target price)
Main Sources of My Knowledge
Mark Minervini
Constance Brown
William O'neil
Speakers on Trader Lion Youtube
Adam Khoo
My Indicators
14 Period RSI.
9SMA and 45EMA Moving Averages added
Composite by Constance Brown
This is for catching failures in the RSI.
The RSI is a bounded indicator so sometimes fails to catch divergences. This indicator helps show that
Composite Settings
Author : Constance Brown (Connie Brown)
RSI Length : 14
RSI Momentum Length : 9
SMA Length : 3
Fast Simple Moving Average : 13
Slow Exponential Moving Average : 33
BABA @ Long Term SupportOn the 4H Chart, BABA is sitting in the the demand zone at a double bottom retest. Earnings
two weeks ago beat expectations. Fundamentally, China is holding interest rates down and
may even decrease their prime rate. Domestically, chaos continues with more rate increases
possible and the debt ceiling issue impending resolution versus diseaster. I see trading and
investing in foreign based intruments such as BABA , NIO along with ETFs diversified into
China, Europe, Korea Japan and maybe others to be a useful means to diversify risk. I will take
a long trade in BABA because I believe it will rise from its usual bottom.
CWEB is really sucking it. CWEBWe are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe
Charlotte's Web Holdings (TSX: CWEB.TO) Dec 12, 2019Currently the entire cannabinoid industry is in a downturn. The sky high valuations that these companies have been commanding past few months have clashed with reality, leaving investors scrambling for cover.
The whole premise for the high valuations was the high growth rate. However, as recent events in Canada show, legitimate cannabinoid companies still cannot compete with the black market given the high taxes and the costs of compliance with regulatory requirements. Furthermore, with the government allowing private citizens to grow cannabis, a chunk of the retail market has vanished for these big players. Now the competition among the bigger players is among niche and value added products.
Coming to CWEB, it's revenue has grown in the double digits but so has the costs. Currently, the stock commands a PE of 213 (Yahoo Finance), which would theoretically take an investor more than 2 centuries to recoup his/her investment (assuming no growth rate). Critics may point out the impressive rate of growth, but the key question to ask: Is the company generating any money?
A quick glance at the Cash Flow statement reveals that although CF was positive from FY17 to FY18; however in the TTM the company has spent 44,000K from its reserves. Furthermore, in the company's short life span, FCF was positive only in 2017.
Based on the analysis, CWEB would not find a space in my personal portfolio. It seems that the company is funding it's growth from shareholder equity. In the absence of shareholders pouring in money coupled with a negative FCF, the company would find it challenging to sustain its growth.
CWEB update 15july2019 @cryptoknee $cweb update...this is the bear count. Soooo, hit the upper Channel line, channels perfect no matter which anchors you pick btw, sup/res hit, reject off of .50, almost hit 1.217 of A, but has not crossed into wave "A" territory...not gonna call it done yet, but... #potstocks #weedstocks
cweb 7jul2019 @cryptokneewoozers its on a run! Im a bit hesitant to say ATH are near, have to break some key resistances, MO. ABC and 123 are basically the same thing, one must relay on context of count and of course see what the retracement is after the C,3. C waves in ZZ tend towards 1:1 of A but can go 1.272 or 1.618. 3s most common fib projection is 1.618 but of course just need to be the longest of the motive waves. 1st step is to see where it stops and retraces and assess from there. Slight Bear div on 4hr. still with in channel, nearing 50,.618 of larger correction. Nearing a pos c/3 fib projections. bounced outta .50-.618 zone.