I remain bullish Chinese Stocks, even as they continue to sell-off, and even as the $FXI trades into a little bearish H&S pattern, but I got out of my long China trade last week, for obvious technical reasons.
I'm looking to pull the trigger on China, once we see another good whoosh to the downside, and looking for things to pick up after the Chinese New Year (Feb. 1st). No doubt, we will want to be long, Monday of the following week, if not sooner!
This is the year of the Tiger according to the Chinese calendar, and that basically means it's suppose to be a year for change, and in a grand (big/bold) way.
Water Tiger years are filled with energy and excitement. Opportunities for those willing to take a risk or two ...
source: Chinese Astrology 2022 Year of the Water Tiger Paperback – November 9, 2021 - link to amazon
As far as US markets: We saw tech take another little leg lower, breaking the lower channel line, only slightly. It's sitting on the 150 day moving average, and that's pretty significant to some traders, and probably programs, as well.
Of course you'd like to see a washout, on higher than normal volume, but the selling remains pretty orderly.
I used Friday's weakness to cover my remaining short positions.
If you're still short tech, then I suggest you watch the 50 day moving average, on the $SOX.
I am expecting a crash in Semiconductors, and tech in general, but not straightaway, and probably not until Crypo crashes.
We also need to see more bullishness, before Tech can crash, and that means the $VXN (the $NDX $VIX) needs to test the 20 level.
I believe MLK day is next week, so monthly OPEX is going to fall on a truncated week, so watch for the manipulators to drive tech stocks up, and squeeze the short sellers, once again.
And Speaking of Short Squeezes:
$ZNGA - up 50% this morning :)
Take Care, AA
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