Weibo bucks China wipe out on rumor

Weibo stock rises while other Chinese stocks sink

As word of crackdowns (from both China’s central planners and the US) on large Chinese companies intensifies and FXI drops…

fxi, china large caps

…one stock is going the other way.

WB is +13% after being +40% at one point in pre-market. First there was news that it is being taken private, but then quickly followed a denial by the company. Net result? Only 13% this morning.

Not liking this foreign intrigue I took my 20% profit this morning. It was a chart buy and I am not going to get involved in a game of ‘will they or won’t they?’

But the chart has been a thing of beauty and apparently this news or rumor is why. The technical implication is a new recovery high above the February high. But I am not greedy. Weibo was by the way, the only Chinese stock I held.

wb

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