Getting Long $BABA $FXI
Happy Friday! We are going to talk about how we want take advantage of Alibaba moving forward and how to approach trading/investing from a simple strategy to make money in the market. Ultimately that's what here to do, make easy money, so let's jump right in! The post is free so please like, repost and share with friends to help us get the word out!
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China and specifically Alibaba have been headache for the past 2 months. We should know, we called the TOP! That's right, we were instructing our followers to sell $BABA at $121/share and now we think it's time to jump back in!
Sentiment for China, ticker $FXI, is at all time lows after they pumped their economy with cash to get it going back on track and we think now that since Trump is threatening to levy tariffs this is the bad news we've been waiting for. Funny how that works in markets! When they are going up everyone feels happy because they are making money, but when the music stops we don't want to be the last ones out the door! That's why we have levels and stay disciplined.
Right now according to this chart we will are holding a key area on $FXI at $29.6 (our line in the sand for being long. If we can get and break over $31, I'm ready to be long $FXI and specifically Chinese stocks ALL DAY!
But which ones?
The answer might indeed surprise you.
Alibaba, (Ticker $BABA) and Xpeng Inc. ($XPEV) look great, let's just take about Alibaba for now.
If we are looking at China, we want to be buying Chinese stocks, simple, right?
Let's dive in why this is a good trade and investment down here. Alibaba has pulled back 30% and now pulling back to a pivotal spot which traders commonly monitor for long term entries, the 200 Simple Moving Average or SMA for short. And even look today it's creating the beautiful "W" bottom breakout that is one of our best blog posts on our site!
So what are we doing? And what's our approach?
We are allocating a portion of our portfolio to go long $BABA above $84 (for a +$100k portfolio that would be about $10 to $15k), it's as simple as that. From there we'll see how the position does with a stop below $83 for risk management purposes, which gives us discipline should anything go wrong.
What do I mean by anything can wrong and that's why we have a stop?
As with any stock or position there can be unforeseen circumstances like government regulations, if the company issues stock or other outcomes that's why we keep it simple and just follow price!
Our plan of action is set, we've taken the steps to do our due diligence and make the right entry, now we sit tight. If you want to know how we've made trades over 270% this year in $MSTR, or are up on positions of +420%, +328%, 78%, +11%, +15%, +50% or +60% I suggest you join our discord. Our premium membership allows you access to the best professional traders in the world!
Again, if you want to know when we are exiting and entering the stock actively be sure to find us in the discord. That's it for now, if you've enjoyed this post please share it with family and friends or if you have recommendations let us know! Happy weekend and don't forget to trade confidently!
Essex Trading Quote of the Day (#EsxQotD)
"You do not survive in this business for 50 years if you do not find out where the exit signs are the minute you enter the room".
RIP ~ Art Cashin (1941-2024).
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