The Hang Seng China Enterprises Index, which tracks Chinese shares listed on the Hong Kong Stock Exchange, has collapsed for two consecutive days now. Today, in its most volatile trading day ever, it sank 6.6%. This meltdown is primarily due to China’s policy clampdown under the “common prosperity” mantra, more cities being locked down because of Omicron outbreaks, and concerns about the country’s ties with Russia. At the same time, Chinese stocks listed on the US exchanges (e.g., BABA, JD, and NIO) slid significantly yesterday, but as I am writing this newsletter on Tuesday morning, they have bounced back to some extent. You can watch the recap that Brian and I posted here. You will see where we both traded NIO for a nice Opening Range Breakup.
I wanted to trade NIO again as a Fallen Angel Strategy, but I never got the proper entry. Thor, on the other hand, executed an amazing trade on it. I’m jealous! You can review his chart below. Thor promised to post a recap for us, so please make sure to subscribe to our YouTube channel.
Speaking of Thor’s incredible trades, I encourage everyone to attend his webinar tonight in order to learn how he trades based on supply, demand, and value. Thor’s presentation is titled:
Tape Reading Lesson 3 – Analyzing the Ladder Structure
Tuesday, 8pm ET, Webinar Room (Elite members only)
If you are not an Elite member, I hope you will take advantage of our Saint Patrick’s Day sale and upgrade your account with a 50% discount off our Elite annual memberships. You will find the details here.
In terms of news headlines, the leaders of three East European EU member states are making an unexpected trip to Kyiv this morning for talks with President Zelenskyy. Concurrently, negotiations between Russia and Ukraine are set to continue. China, meanwhile, wants to avoid being sanctioned by the US as fears over possible penalties are adding to a historic market selloff. In the US, a number of states are working on measures to temporarily roll back their gasoline taxes as pump prices soared past $4 a gallon.
These horrific events are impacting the market in many different ways, and every trading day seems to be unfolding in an unpredictable fashion. If you are not yet a member of Bear Bull Traders, I hope you will join us and trade next to us.
See you tonight in the webinar!
PS: When time permits, I encourage you to practice your trading in our free web-based market replay tool. It is conveniently available 24/7 and we have just finished upgrading it to better meet your needs. You can check it out here.