Chinese stocks are making a move, BABA stock bumps above the SMA 50
The trends are down, but I added BABA at 82.50 just prior to earnings on a pure bottom feed with no TA based reason to do so. It was just that I’d had enough of the ‘drubbing of China’ narrative and thought it might be time to give this former darling a shot as a hidden and contrary value. The paper return* is 24% so far for a couple weeks work.
Here’s the picture of today’s bump above the SMA 50 within its downtrend. The best thing it’s got going for it technically is the combo of positive RSI and MACD.
I have a few other items on watch, including TCEHY, NTES and funds FXI and TDF. NTES especially, has a nice chart that has been relatively strong as I think its business is not as much under the iron fist of China’s Ministry of Central Planning.
Just an FYI that this forgotten outpost (otherwise known as an ascending but troubled society) has a stock market and was once the playground for all sorts of buttoned down investment houses and hedge funds alike. The bear market is about 1.5 years old now.
* Oh yes, I’ve had plenty of situations where I let nice paper returns evaporate. This is a genius free zone run by a hybrid trader/investor.
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