$Alibaba (BABA.US)$ $KraneShares CSI China Internet ETF (KWE...
$Alibaba(BABA.US$
$KraneShares CSI China Internet ETF(KWEB.US$ baba has covered the gap at 125 and broke the support at 123. I did mentioned 123 is NOT a strong support and the strong one is down at 114 and even 108. Do not be surprised baba will go down till those levels. Thus I kept emphasising despite I entered for a swing trade, I told you guys to not enter yet if you were buying for long term. Because we are not at a key support that is able to hold it means the fall is not complete.
$KraneShares CSI China Internet ETF(KWEB.US$ baba has covered the gap at 125 and broke the support at 123. I did mentioned 123 is NOT a strong support and the strong one is down at 114 and even 108. Do not be surprised baba will go down till those levels. Thus I kept emphasising despite I entered for a swing trade, I told you guys to not enter yet if you were buying for long term. Because we are not at a key support that is able to hold it means the fall is not complete.
You have to be overly cautious now more than ever as the US stock market is going through a correction and that will likely drag China down further.
Ultimately BABA is heavily weighted in Kweb etf and I have been calling for months since early May that KWEB will hit 39 before a trend reversal. Looks like we are on its way. I believe 39 is the spring for the accumulation phase to transit into a mark up phase. Thus once kweb hits 39, both baba and kweb will be a buy at that zone. And we will likely see the 2nd and 3rd signal of a trend reversal.
As always trade safe & invest wise!
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丁蟹NA : Thx bro. it did hit 39. omg
Investing 101 OP : Yes it did hit 39. Didn't seem possible months back. Finally it hit. It was fibonacci level. I believed it needed to hit 39 to see a real reversal after that. But so far still not yet oversold level. Will wait for Monday to continue another sell of before I enter on leaps
Cantigal : Hello investor 101, quick question for China tech etf, Is KWEB better or CQQQ? Noted that CQQQ have better long term return and lower risk , however its liquidity in the market is definitely much lesser. Thanks!
Cantigal : I’m looking to Buy and hold the China etf for long term … so looking for bargain buy now
Investing 101 OP : CQQQ is more diversified. It has over 100 holdings. Whereas kweb is more concentrated into 50 holdings.
Thus in terms of volatility, kweb will have higher volatility due to lesser holdings. It will fall faster in events of bad news for China stocks but when it rise, it will go up faster than CQQQ too. This is due to concentration of the companies in the ETF. Liquidity also plays a part as low liquidity will mean stock price can fall very fast during times of capitulation.
Thus we prefer to get into something with high liquidity.
Jensen Philanthropy : BABA IS DEEPLY UNDERVALUED, BUT AS ALWAYS THE DIP CAN DIP DEEPER, ONLY PUT IN MONEY YOU WON'T NEED
Investing 101 OP Jensen Philanthropy : Very well said.