39.33 +0.30 (0.77%)
Pre-Market: 9:03AM EDT
|Bid||39.34 x 4000|
|Ask||39.41 x 45900|
|Day's Range||38.31 - 39.10|
|52 Week Range||33.10 - 45.29|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-13.84%|
|Beta (5Y Monthly)||1.20|
|Expense Ratio (net)||0.74%|
Strained relations between China and the U.S. stir up new risks in the stock market as both counties try to navigate through the pandemic economic collapse.
Will markets go up or down as we move toward summer? No one knows for sure, but one metric to watch is activity among short sellers — investors who believe a particular security will decline in value.
Beef Prices Rise to Record Highs As Tyson Foods Stays Shut Down Despite President Trump’s executive order for meat processing plants to remain open, meat processing plants, particularly of Tyson Foods (NYSE:TSN), remain closed. On the one hand is President Trump, executively ordering them to open back up, and on the other hand is the […]The post Market Morning: Beef Prices to Record Highs, China Warns of Conflict, Germany Against ECB appeared first on Market Exclusive.
The good news for Chinese stocks is that they have recovered well off the March lows. This stands to reason because China suffered first from the novel coronavirus and it is recovering ahead of everyone else. So today's thesis is simple because the expectation is that Chinese stocks also recover faster. Moreover, when the rest of the world re-opens they would also help China keep its momentum. Today we discuss three ways to trade the Chinese recovery phase.While this sounds easy, the bad news is that the majority of the Chinese stocks peaked in 2018. The January indices highs were still 15% below the two-year-old high mark even before this crisis. There were some stocks that did better than others, so it's not all bad. It is important to note that there is an added wrinkle and it revolves around fraud. Recently, two high-profile Chinese companies, Luckin Coffee (NASDAQ:LK) and Iqiyi (NASDAQ:IQ), are accused of shenanigans. The subsequent headlines shook all the Chinese stocks, and Lukin is still halted. So this undoubtedly casts a shadow over the rest of the bunch. Case in point, the sector was down on Wednesday when the S&P 500 was up over 3%. * 7 Penny Stocks To Buy with Massive Upside Potential But there are still some Chinese stocks that are worth considering right now:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * iShares Trust - iShares China Large-Cap ETF (NYSEARCA:FXI) * Alibaba (NYSE:BABA) * Baidu (NASDAQ:BIDU)With all of this in mind, here's what you should know about each opportunity. Chinese Stocks to Trade: iShares China Large-Cap ETF (FXI)Source: Charts by TradingView Sometimes it is difficult to pick the winners out of a bunch. It's easy to have a thesis that Chinese stocks should rally, but picking the right one to back can be tricky. Case in point, those who bet on LK or IQ lost a lot because of surprise headlines. While the black mark will extend in sympathy to the entire group, that effect is temporary. Instead of risking single stock stories, investors can cast a wide net by betting on an exchange-traded fund via the FXI.The disadvantage of doing this is not having a specific fundamental trigger. The rally, then, depends on the momentum that builds from the individual components. This week, the FXI tried to break out from $38 per share, but it hit resistance from prior pivot levels. The slog from here into $41 per share is indeed full of resistance. The bulls will need strong conviction to power through all of it. The good news is that the relative strength index suggests that they could do it, but it needs the help of the general markets. Patience is a virtue in this case because the economic data will be horrendous.The good news is that there is support below that is 14 years old. This is a base that the bulls can use to spring from. Options traders can also sell bullish spreads to generate income without needing a rally to profit. The support also means that the long-term trend from 2009 can remain intact. FXI stock has been setting higher-lows since then. This harsh crash that we just experienced did not breach that line, in fact it kissed it almost perfectly. So my assumption is that the bulls will remain in control and they will continue upwards until they breach said resistance. This will take time but it will happen without another shoe to drop. Alibaba (BABA)Source: Charts By TradingView Unlike the FXI, Alibaba stock did in fact set new all-time highs this year. But it also suffered on the virus crash.However, it is in much better technical shape then anything here. The long-term trend is still very positive and intact through all the tests. The bulls are in complete control because BABA stock continues to set higher lows. And for the last two months it's also been setting lower highs and this is tightening into a point. Usually this means that there's a move coming, but the direction is not yet set.The long-term chart also suggests that the April low may serve as the baseline bulls need. This is important because it could act like October's low did at $160 per share. This would be the certainty investors need to level up going forward. BABA stock also just met the target of a breakout pattern from $189, so I expect it to face resistance near $200. It would be normal price action for it to fade and retest the neckline it just cleared. This would allow it to gather new steam to tackle the necklines above.Just like the FXI, BABA stock has support through $170 per share. This is confidence that the fans of the stock need in order to continue their mission. But if they lose that then the conversation changes because it would trigger a potentially nasty bearish pattern that may cause another big correction. While this is not my base case, it is a scenario that investors need to know. * 10 Cheap Stocks to Buy Under $10 On a side note that has nothing to do with its actual business, Alibaba's management is proving itself as an upstanding team. Just yesterday, Salesforce (NYSE:CRM) CEO Mark Benioff shared in a CNBC interview that BABA has been helping other countries secure protective equipment to help fight the Covid-19 villain. Baidu (BIDU)Source: Charts By TradingView Baidu stock is in even worse shape than the FXI. It had already been a broken stock even before this crisis. For some reason the bulls cannot hold any momentum at all. It has continually set lower-highs and lower-lows for almost two years. The promise of the 2017-2018 highs ended in a double top that precipitated a 70% crash. Its ties to IQ are definitely not helping its cause this week.The chart suggests that something has to give. We should soon either find out that the company is not broken and the stock will spike in a big way. Or, conversely, it will lose the 10-year-old support zone and it crater to $50 or lower. I have no reason to believe that this is the time that Baidu will lose support, so my base case is that the upside scenario has better odds.This won't be easy because there is a ton of resistance on the way up. Every ledge that served as a trap door will become a test to beat on the way up. So for the investors who bought the BIDU bottom, it would be smart to trim or book some profits near $110 and $120 per share. It is likely to stall on any rally through them. So the questionable part about the rebound is sustainability, because follow through is hard to come by with BIDU stock. Let's not forget that the first step is to hold the line; otherwise, disaster ensues. This sounds scary but it is a chart reality that exists.Of the three kickers today, Alibaba stock is the one that looks healthiest. If investors would like to bet on underdogs, then Baidu is the one to buy here. Otherwise, using the FXI would be the way to throw a blanket long over the entire Chinese stock recoveryNicolas Chahine is the managing director of SellSpreads.com. Join his live chat room for free here. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 Chinese Stocks to Trade As the Country Makes a Recovery appeared first on InvestorPlace.
Wall Street is in the middle of the bloodbath, and this week was shockingly negative -- setting records, and not the good kind. The global fears from the spread of the coronavirus ignited a panic among investors. Meanwhile, just a few days ago, stocks made a new all-time high. And by the end of Thursday, the market had fallen into an official correction at a record pace. Sure, many companies are feeling the heat, but Luckin Coffee (NASDAQ:LK) was hit hard, and LK stock felt burned.Source: Keitma / Shutterstock.com At its current price, Luckin stock has fallen 11% from last week's highs -- which was 16% below the all-time high set in January. So clearly, LK stock moves fast. And on the way down it looks, like it's falling into an abyss. However, homework matters. LK Stock Has the Sniffles, but Not a Deadly DiseaseYes, there is pain. But relatively speaking, Luckin stock held up better than Starbucks (NASDAQ:SBUX) through this tough period.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlthough both stocks are in the red in 2020, LK stock is up nearly 88% the past 12 months while SBUX has gained just 11%. All things considered, this is surprising given that Luckin operates in China -- which was ground zero for the coronavirus.Moreover, retail in general suffers when there is fear of infection. But, nevertheless, LK stock is resilient -- and this proves that it has its fans who are not afraid of adversity. * 10 Stocks to Buy for Your 10-Year-Old Maybe it's because the stock is in the hands of strong investors, as it just recovered from a 35% crash not too long ago. So those who bought the dip then may not be as scared of a this much milder selloff so far.On Jan. 22, I wrote about the potential of better entry points and boy did that turn out to be true. So there is always the potential of big moves from LK stock.This, however, should not scare investors out of it because there is always a reason to worry. In this case, management earned the benefit of the doubt because in such a short period of time, Luckin Coffee is already a formidable competitor to Starbucks. Therefore, over the long term, the matter of trade timing is not going to be critical. Relief Is Coming for LK StockAt the Thursday lows, LK stock was was down big, but then buyers stepped in in force. Luckin stock closed well off the lows, thereby leaving a bullish posture candle with a long tail. This could be an emphatic rejection of the lows, as this also happened on the bottom it set on Jan. 31st.Nothing is fully certain, but small signs like this leave clues. Moreover, Chinese stocks have been more resilient like the iShares China Large-Cap ETF (NYSERCA:FXI) and iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) were both green this week on days that the S&P 500 was down 3%. Maybe since China led the world with the virus worries, it is now the first trying to emerge from their effects.Whatever it is, clearly this is not normal price action. So today, let's assess current levels and try to find potential support zones below. Knowing those two things, the investors can then decide whether the upside potential is worth the risk at this point.Let's start with the fundamentals. LK stock is not cheap, as it operates at a loss and sells at an astronomical multiple of its sales. For now, investors should give it leeway because they are focused on growth. Management is making bold moves with unmanned kiosk delivery solutions, and who knows what else is next. So in this case, you get what you paid for because in the last six months, the stock is up almost 97% while the S&P 500 is mired flat. The LK Chart Says a Lot About What's NextSince it is expensive from the traditional sense, value will not act as support. That said, we turn to the charts to find the clues.Thursday's low was just under $34, which was support for all month long. So far, it's holding strong, and so the bulls are somewhat comfortable relying on it. But if it fails, then it is likely that LK retests the January lows -- and those would be even stronger support.Moreover, if the market-wide panic persists, then this second leg lower is more likely than not. Otherwise, I suspect it's not a likely scenario.Simply put, if someone held the stock through yesterday pain, then the time to panic out of it has passed. The next decision would be based on the outcome of the near price of $34. The next three trading days are crucial, and it's best to sit them out.However, I bet there will be buyers on any incremental selling. Depending on investor time frames, this dip is already a good opportunity to initiate new positions or add some to current ones. Overall, the overall global macroeconomic conditions are still bullish after the effects of this virus fade. The World Is Committed To GrowthCollectively, the global governments and their central banks are committed to reflating growth. So they will throw a ton of money at the problems.In the U.S., we have a very favorable Federal Reserve that is expected to cut rates sooner rather than later -- and more than once. China has already committed billions to offset the negative effects of the business disruptions, so shorting the markets with new positions from here seems illogical.Conversely, there is no rush into piling into any stock at this point. Therefore, it makes sense to either sit out the next few ticks at the expense of missing out on a few upside profits, or nibble with small positions. Neither bulls nor bears should be confident in their positions here because there is so many unknowns. The headlines are insanely confusing, and most likely inaccurate.Overall, Wall Street sells first, and then asks questions later. So far, investors already priced out more than $2 trillion dollars in market capitalization. This is likely more than enough to cover all the effects to the company bottom lines. Just like we rally too fast, my opinion is that we're falling too fast and somewhere in the middle lies the truth.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Your 10-Year-Old * 5 Hot Cannabis Stocks to Snap Up * Buy These 5 Super Fast-Growth Dividend Stocks While They Are Down The post Despite Market Correction, Luckin Stock Remains Hot appeared first on InvestorPlace.
The month of January witnessed Middle-East tension, the coronavirus outbreak and the return of global growth worries, putting the spotlight on these ETFs.
The month of January witnessed Middle-East tension, the coronavirus outbreak and the return of global growth worries, putting the spotlight on these ETFs.
Stocks have taken a big hit in the past week on Wuhan coronavirus fears, but Chinese stocks have gotten hit especially hard. Not surprisingly, short sellers have been particularly active in certain Chinese ...
This figure from S3 Partners includes shorting of ETF shares worth $62 million and equities worth $275 million. The top China-centric ETFs being targeted by short sellers include the ISHS MSCI China ETF (MCHI), ISHS China Large Cap ETF (FXI), Kraneshs CSI China Internet Fund ETF (KWEB) and SPDR S&P China ETF (GXC). Travel restrictions are in place throughout China's major cities and health screenings are increasing at major airports in Asia and Europe.
Coronavirus fears are taking a toll on Chinese stocks this week. But there's a silver lining to the carnage. Most of them, like Alibaba (NYSE:BABA) stock, had share prices that were hotter than a freshly fired pistol. They needed a pullback, and the virus news, as terrible as it is, provided the catalyst needed for Chinese equities to cool off.Source: zhu difeng / Shutterstock.com Now leaders in the space offer attractive buy-the-dip setups. Spectators reticent to chase last week's lofty prices have the chance to pile in at lower-risk levels.We'll break down the opportunity in Alibaba stock below, but first, let's look at the price action in the iShares China Large-Cap ETF (NYSEARCA:FXI) to provide the backdrop for our trade idea.InvestorPlace - Stock Market News, Stock Advice & Trading Tips China's Stock WoesSource: The thinkorswim® platform from TD Ameritrade FXI is the most liquid exchange-traded fund available for diversified exposure to China's stock market. As such, it is the go-to vehicle for traders and investors seeking access to the largest companies in the country. The spreading coronavirus crisis has taken FXI down 6.5% from last week's $45.29 high. It's far from a major correction, but enough to reintroduce fear into a marketplace that has been extremely complacent. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Though the descent has pushed FXI below its 20-day moving average, the 50-day is holding firm this morning. We are testing the lower boundary of its trending range in what could turn out to be a buying opportunity. Because the damage to FXI has been insufficient to turn the intermediate-term uptrend, I suggest maintaining a bullish view on China and the entire emerging markets space for that matter.Alibaba stock is retreating alongside FXI and offers a compelling low-risk setup as well. Let's take a closer look. Alibaba Stock ChartsSource: The thinkorswim® platform from TD Ameritrade Late last year, BABA finally mustered the strength to break out out of its two-year trading range. The phase-one trade deal, and improving sentiment surrounding emerging markets, boosted the stock to a new record. Momentum increased during the ascent, breathing new life into what had become a flagging trend. Volume patterns also confirmed institutions were wading back into the waters with multiple signs of accumulation.Because of the groundswell in demand, I suspect any weakness over the coming days will prove a buying opportunity. There are too many potential floors beneath the price to bet against bulls here. I'm eyeing the next two support zones at $207 and $200.The daily view reveals Thursday's push below the 20-day moving average was quickly bought up. Rather than selling the down open, buyers swarmed, sending Alibaba stock toward its high of the day by closing time.Source: The thinkorswim® platform from TD Ameritrade The next quarterly report on Feb. 12 could inject volatility into what has otherwise been a well-behaved uptrend. That's the one X-factor that could upset what is now a clear buy-the-dip setup.If you're willing to lean long into the announcement, then deploy bull put spreads.The Trade: Sell the Feb $210/$205 bull put spread for around $1.30.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Buy Alibaba Stock on Coronavirus Fears appeared first on InvestorPlace.
As the formalization of the Sino-US trade deal nears, China's recently-released export data for December looks encouraging. In such a scenario, we highlight some ETFs that can gain.
The United States will no longer consider China a currency manipulator, according to media reports. Bloomberg said Monday that Trump administration sources said the Treasury Department will lift the designation of China as a currency manipulator in an upcoming semi-annual report. The Treasury Department labeled China a currency manipulator last August, escalating the trade war between the countries, following a move by China’s central bank to allow the Chinese currency, the yuan, to fall in response to newly enacted U.S. tariffs.
Policy easing, subsiding trade tensions, technological disruption and solid household savings should boost these China ETFs in 2020, even after a solid 2019.
The iShares China Large-Cap ETF (FXI) , the biggest China-specific ETF by assets under management, is higher by almost 4.4% this month and that puts the benchmark China fund in position for a technical breakout of potentially massive significance. FXI and other China ETFs have recently rallied against the backdrop of cooling trade tensions between that country and the U.S., the world's two largest economies. Like the majority of emerging markets, China hasn’t been immune to the pangs of the market volatility within the last couple of months due to the U.S.-China trade war.
BoJo Blowout, Britons Back Brexit (Again) Boris Johnson and his Tory Conservatives completely trounced Jeremy Corbyn’s Labour last night in a landslide victory that saw the Tories win the most seats since the days of Iron Lady Margaret Thatcher. With all but two seats declared, the Tories are up on 363 to Labour’s 203, an […]The post Market Morning: BoJo Brexit Blowout, Maybe China Deal, Major League Cannabis, Aramco Shenanigans appeared first on Market Exclusive.