Well, the thesis finally played out and the options will open juiced across all Chinese equities. So now what?
The Hong Kong Index (HK50) is now printing its 9th green day in a row, the china stimulus package is now across all news websites. Retail BABA holders are cheering with excitement and posting their wins on wallstreetbets.
We can now sell them some of our juiced calls.
I do not feel this is even close to the high of this rally, that’s not what matters. All I care about is how much edge I have left.
Moving on…
The market as a whole is a choppy mess, littered with stuffs, fades and random wicks. It’s far from an easy market, those who have a few positions in their portfolios will often try to tell you otherwise. As somebody who’s main positions are China I’ll still be honest and say, it’s hard right now.
SPY is at ATH and for most it’s confusing how we even got there. Tesla is a great example, I’ve been watching for an entry but never saw one I particularly liked. Yet the name just keeps edging higher. The break of 233 was nice but not A+ (For me) and so it was left. If you class something a miss just because it’s higher/lower from the point you started monitoring it, you’ll develop a losing mindset. If your setup did not form then it’s not a miss, sure it still sucks, but forget about it and move on.
$BMY Incredible relative strength compared to XBI yesterday, completely unphased. Lovely daily and weekly setup, nothing not too like.
$IWM It’s worth noting that the bigger picture setup remains bullish, huge move from lows followed by a bull flag. Still keeping an eye on those list of small caps.
Furthermore, energy names are looking better as the days go by. I of course missed the uranium move but will keep a close watch for all forms of energy to consolidate. XLE is an interesting proposition to me, a revival of the Chinese economy is a massive catalyst for energy. Funds are also caught with a heavy short position against it.
$IONQ – Finally a week above key levels and that 7.70 level, the EU also announced more funding for quantum chip development. Still a sector yet to gain traction but this price action is pretty bullish.
$XBI – Overall a strong weekly flag still, just a lot of mess chopping people out and getting them “fed up”.
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