Technical Strategy Video (Recorded Thursday, November 11th):

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • China slowly but surely bottoming out, and recent stabilization bodes well for buying into Chinese Equities ahead of Beijing 2022 Winter Olympics
  • Technology stocks in China look relatively attractive vs US Technology; While this trend is just starting to turn up, this will become more appealing on a breakout above October in relative terms when looking at ETF’s like KWEB
  • Emerging markets are starting to hold up quite well, even during a Dollar rally. Wave structure in EEM, VWO remain corrective, suggesting an eventual push back to highs

China Bottoming

Don’t look now, but $FXI (iShares China Large-Cap ETF) looks to be forming a Reverse Head and Shoulders pattern which would be confirmed on a close over 42.70.  Given Thursday’s surge to multi-day highs, weekly charts are shaping up nicely and momentum is improving.  It looks right to favor a bounce in China into next year, positioning here and using any weakness to average down. Initial upside targets lie between $46-48.

The video in this report is only accessible to members
China Technology firming up vs US TechnologyKWEB, the KraneShares CSI China Internet ETF, looks to be bottoming out, similar to FXI.  The...

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