In addition to the persistent MCD weakness, Yum! Brands (Taco Bell, Pizza Hut, KFC, etc. all big in China) is working on a post-earnings bear flag of its down, seen on the daily chart below.
This is all happening, with Yum’s China exposure, while @RaginCajun is crushing high beta China stocks like MOBI inside 12631 today.
For now, the market is clearly rewarding high beta, speculative China names over a name like YUM, which you would think should flourish.
________________________________________________
Raising consumer prices doesn’t work too well in China as food costs are a much higher percentage of income there. This, on top of bad PR is a killer for these names. Now, industrial names there are ripe to rip on their wondrous central planning and infrastructure surge.
Great points, thanks.
long aapl short hd
Like it