Alibaba and China-Can They Push Through Resistance?

---

August 10, I appeared on CNBC Asia to discuss Alibaba’s surprise beat on earnings and China’s weak economic data.

I began the segment reminding investors (and myself) that regardless of the news, opinions of analysts and the talking heads, price pays.

It is with that in mind, I mention the following:

1. Alibaba reported sales up 14% along with their improved margins.
2. Biden banned US firms from investing China while China buys $5 Billion chips from Nvidia for use in AI. These chips are designed in the US and made in Taiwan and South Korea.
3. China’s deflationary numbers come vastly from falling pork prices and transportation costs-this will not necessarily impact global inflation.
4. The jobless rate of youth has risen to alarming numbers.
5. China can print money thereby adding liquidity if necessary and most likely will do so.

The chart of FXI, also featured on the Final Bar with Dave Keller-link below-indicates that the price, which failed the July 6-month calendar range high on Friday, fell into support.

On Thursday, the price sat on the July 6-month Calendar range high. In the clips, we say that FXI must clear $29.00.

The Real Motion indicator, even with the drop in momentum, remains in a bullish divergence as the moving averages are stacked with the 50 over the 200 DMA. The price chart that has yet to happen.

The Leadership also switched from FXI outperforming the SPY to underperforming.

Nonetheless, you can now watch momentum, leadership, calendar ranges and price as a guide for a potential investment.

CNBC Asia (partial clip)

Alibaba BABA did better than FXI on Friday.

The phase is bullish. Price is doing a bit better than momentum.

BABA is outperforming the SPY.

Hence, this week we will look for a move back over the July 6-month calendar range high (97.04).

I will be off for a few days..enjoy and remember..

Price pays!

 

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

If you find it difficult to execute the MarketGauge strategies or would like to explore how we can do it for you, please email Ben Scheibe at [email protected], our Head of Institutional Sales. Cell 612-518-2482

Get your copy of
Plant Your Money Tree: A Guide to Growing Your Wealth

Grow Your Wealth Today and Plant Your Money Tree!

"I grew my money tree and so can you!"- Mish Schneider

Mish in the Media - All clips here

CNBC Asia 08-10-23

StockchartsTV Final Bar with Dave Keller 8-10-23

Benzinga Morning Prep Show 08-10-23

Business First AM 08-08-23

CMC Markets Short term trader 08-09-23

Making Money With Charles Payne Fox Business 08-07-23

TD Ameritrade 08-03-23

CMC Markets Short-term Trading 08-02-23

Business First AM 08-02-23

Business First AM 08-01-23

Yahoo Finance 08-01-23

 

Coming Up:

August 17 Wolf Financial Spaces 1 PM ET

August 17 Real Vision Daily Briefing 4 PM ET

August 28 Chuck Jaffe Money Show

September 7 Singapore Breakfast Tadio 89.3 FM

October 29-31 The Money Show Schneider, Michele (moneyshow.com)

 

ETF Summary

S&P 500 (SPY) 450 pivotal 440 support at the 50-DMA

Russell 2000 (IWM) 191 is the 23-month holy grail 194 July 6-month range hi

Dow (DIA) 35,000 support

Nasdaq (QQQ) 362-382 range

Regional banks (KRE) 48 pivotal

Semiconductors (SMH) 150 now the place to get back above

Transportation (IYT) July 6-month calendar range high at 259.30 and 254 some support

Biotechnology (IBB) Compression between 123-130

Retail (XRT) 66-67.40 short-term range (closing levels matter)