Waiting for Gains in China

Published on
9 August, 2018
Topic
Trading, Technical Analysis, China
Duration
8 minutes
Asset class
Equities

Waiting for Gains in China

Featuring Dave Floyd

Technical analyst Dave Floyd, founder and president of Aspen Trading Group, is bullish on Chinese stocks. In this video, he reads the charts and breaks down his ETF trade. Filmed on August 7, 2018 in Bend, Oregon.

Published on
9 August, 2018
Topic
Trading, Technical Analysis, China
Duration
8 minutes
Asset class
Equities
Rating
18
Sharing

Comments

  • DF

    Dave F.

    24 8 2018 16:20

    1       0

    Stronger Chinese yuan coming into play over the last few days. In the video I suggested shorting USD/CNH into the 6.90-7.00 area.....prices did, in fact, stall into that range and are now impulsively lower at 6.8000.

    Shanghai Composite also moved lower to 2700'isg (as noted).....rally from here? Still not clear, but many momentum divergences into the lows.

  • DF

    Dave F.

    23 8 2018 03:07

    0       0

    FYI...for those keeping track.....long recommendation from a couple months back, LOW, a nice +6% pop higher....maintain long.

  • DR

    David R.

    15 8 2018 14:11

    0       0

    Always interesting, thank you.

  • KH

    Kurt H.

    14 8 2018 22:02

    1       0

    Dave, I just wanted to thank you for your work on RV and the tradee ideas you are posting. Coupling these with my own research and observations I have been very happy with my results on DBX and AAOI. I am still researching this one on China which is tricky. I take these videos for what they are, ideas, and if there is something I don’t agree with or don’t understand, I don’t trade on it or set it and forget it. Keep up the great work and keep ‘em coming. Thank you.

  • MU

    Mo U.

    13 8 2018 02:04

    1       0

    Dave, you mentioned that "my facts are so far off it ain't even funny". Let's see:
    IWM; your 3 month target price was 193. We are close to the 3 month timeline, and the current price is 167.
    DBX: you are correct, the puts haven't expired yet, but looking at the current price I can tell you that they are under water.
    IJH: I never mentioned that ticker, so I can't comment.
    AAOI: in your June recommendation you stated a "near term realistic target of 58" and "we'll add more positions as prices begin to move higher". That is quite in contradiction with your statement below that "prices were around $42.50....went to $50 then turned lower....any trader with an ounce of common sense would have booked profits and not allowed a winner to turn into a loser".
    Regarding your current recommendation, long Chinese stocks, it seems a risky bet in my opinion based on all wha't going on in the EM space (increasing tariffs to China, collapse of the Turkish lira, economic sanctions to Russia, etc). I can see some value as a contrarian bet, but not something I would recommend to non-professional investors, which I believe represent a big percentage of RV subscribers. In any case, I wish you the best in that trade.
    At least, I believe we both share the same opinion that it would be good that RV implemented a rating system.
    Best, Mo

  • DF

    Dave F.

    12 8 2018 22:04

    1       0

    Mo U.....I responded to your posting from Saturday. Please see below. Your comments were inaccurate and needed a well-researched retort.

    Enjoy the rest of your weekend.

  • MU

    Mo U.

    11 8 2018 20:24

    5       2

    What a joke! Dave has been wrong pretty much every single time with his recommendations (IWM, Drop Box, AAOI, etc etc) - with very few exceptions such as Conoco Philips. Since RV is targeting the mass market and not the sophisticated investor community, I think it is about time that you create some some sort of rating system that keeps track of the performance for each contributor's recommendations. That way people will be better informed about who to trust or not, and in some cases - like Dave's - whose ideas we should short (which is also very valuable!). Simple stating at the end of each episode that "this is a trade idea, and not investment advice" just doesn't do it for most of us.

  • MF

    M F.

    11 8 2018 17:20

    0       0

    Dave...thanks for that...would you say a similar formation/favorable up/down is taking shape in the first cousin of the etf you mentioned in the form of SGX FTSE China A50 index futures (BBERG ticker XU1 Index for the generic)...its got a high correlation to the ETF and similar fundamental dynamics, although you are better placed to comment on the chart for this liquid china future that trades in Singapore. Thx in advance

  • JM

    John M.

    10 8 2018 07:46

    0       0

    Dave,
    What is/are the trigger(s) you use to express your trade when you are waiting for a trend change such as this one? Are you looking for a smaller degree five waves up, a close above the down sloping trend line or other factors such as sentiment?
    John

  • DI

    Dabangg I.

    10 8 2018 01:59

    0       0

    Given your time horizon, how would you suggest playing FXI, Buying ETF or call options? Also, when do each of these make sense in the context of time frame and swings you are looking at?

  • JS

    Jon S.

    9 8 2018 21:16

    3       0

    Dave,...seperate topic. How did we miss on NGD?

  • SH

    Steve H.

    9 8 2018 21:00

    0       0

    Well-argued, as always.

  • JE

    James E.

    9 8 2018 20:30

    2       0

    Elliott Wave forever.
    Agree Dave on your view on Shanghai Composite Index, also I count a Wave 2 up in the USD/CNY. Increased strength in the CNY could last for years.
    There could be very volatile markets next year.

  • DF

    Dave F.

    9 8 2018 13:25

    1       0

    GM Sin.....isn't it funny how similar conclusions can be drawn via a different method/approach? I will certainly call Raghee and have a chat about this forecast. Enjoy the week and the last weeks of summer.

  • JD

    John D.

    9 8 2018 12:52

    0       0

    Nice job Dave... Short and Sweet...

  • SH

    Sin H.

    9 8 2018 09:36

    0       0

    Interesting that this idea is pretty much the same as the one proposed by Raghee Horner on 7/3 - but approached it differently. Thanks.