The Chinese market is arguably one of the best-valued, even after substantial gains over the last eighteen months. Chinese stocks look positioned for another “buy the dip” opportunity as we continue to target new multi-year highs into Christmas. In hindsight, we took profit too soon in May, but that doesn’t mean we won’t buy back in at higher prices, i.e. it’s all about profit and risk/reward, not ego!
- I believe the risk/reward towards the IZZ ETF looks good around last week’s low if Chinese stocks dip on Middle Eastern uncertainty.
Trade Idea: Buy the iShares Large-Cap China ETF (IZZ) at $53 with stops at $49.80 – 6% risk.
Add To Hit List
