Surprise! China’s MSCI Index To Include Alibaba, Baidu

Several Chinese internet companies spiked at the close on news they will be included in China’s MSCI index.

Other stocks seeing a spike on the news were $WUBA $CTRP $NTES $QIHU.

There are other internet stocks included in the addition, but they did not immediately spike higher.  YY and SFUN, for example.

Overall 14 US-listed China internet stocks are being added to the index.  China loves the internet, even if their government aggressively censors it.  Now they can gain tons of exposure to their favorite companies via the MSCI index, which was previously dominated by banks.

Congrats if you were long any of the aformentioned names prior to this announcement, however I think this can put a bid in these names for more than just a spike.  Therefore China has effectively stolen the thunder from our USA internet day, Cyber Monday, again.

har har har

If you are looking for sweet online discounts your browser needs not stray far from Amazon.com.

United States consumers are not likely to outperform the Chinese and their stellar Singles Day performance, but Cyber Monday likely benefits Amazon more than any other retailer.  For one, their website and app are running smooth, unlike Target whose site went down this morning.

Amazon is also using today to tout their ongoing drone delivery initiative.  Check it out:

Is this science fiction or is this real?

It looks like science fiction, but it’s real. One day, seeing Prime Air vehicles will be as normal as seeing mail trucks on the road.

So the future will have little drones flying around delivering packages and an Uber fleet of autonomous Tesla cars.  Nice.

While visions of the future make my head spin, I am completing all of my holiday shopping from the comfort of home via the kings of online retail: Amazon, FTW.

NASDAQ futures are priced to gap up into the week after an overnight session featuring normal range and volume. Price initially worked lower but held the Friday session low before a strong push higher around the Europe open. Heading into cash open price is trading near the high mark set during thin Thanksgiving day trade.

The only economic event of note today is Pending Home Sales at 10am.

Last week price started flat, a small rally rolled over and we saw Monday weakness bleed into Tuesday morning after reports of a Russian military jet being shot down. Price rebounded by the end of the week and overall we essentially traded flat.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4685.75 before responsive buyers (responsive relative to the open, initiative relative to Friday close) step in and work to take out overnight high 4700.50. Look for a test above 11/23 high 4706.75 before two way trade ensues.

Hypo 2 buyers make a gap and go drive higher, take out 4706.75 early and sustain trade above it, setting up a run for test above contract high 4729.50. Look for responsive sellers up near 4735.50 and two way trade ensues.

Hypo 3 sellers push the gap fill down to 4685.75 then set their sights on 4675.50 VPOC.   Look for responsive buyers near 4672.50.

Levels:

Finally after 8 weeks of mostly being wrong via short bias, my model is neutral.  This is a perfect stance heading into month-end.

I can observe the new month behavior without any model nudge on direction.  Instead I can rely on flow and sentiment.  This also means I will just be scalping, both sides, unless a clear bias emerges.

Exodus members: the latest Strategy Session is published.  Check it out.

NASDAQ futures are priced to gap up into Black Friday after a globex session that featured normal range on elevated volume.  Price managed to press up into the excess high formed Monday morning before responsive sellers stepped in and pushed price down through the Wednesday cash close.

The economic calendar is clear today, but we do have an early close.  Trade will end at 1:15pm today.

If I could, I would remove the Thursday trade bars from my chart.  They are not actual cash trade since the underlying stocks were not trading.  Wednesday we printed a normal variation up, barely, in a balanced, churn of a session.

Heading into today my primary expectation is for buyers to push up through the overnight high 4703.25, barely, and then two way trade ensues around 4697.

Hypo 2 sellers push into the overnight inventory and close the gap down to 4677.25.  Look for a responsive bid near 4675.75 and two way trade ensues.

Hypo 3 no action.  Churn range between 4697 and 4681.

Levels:

Happy Thanksgiving everyone.  I was fortunate to host my family for a dinner party this evening.  I personally called and ordered pizza.  I am thankful for the food choices I have here in the United Steaks.  At the spark of impulse I can have anything from vegan dairy to 1/2 pound hammed burgers.

You guys mean a great deal to me.  This is a solid learning environment.  There are some more advanced, some less, and we collaborate to dominate the stock market.  The internet made this possible, along with vision of Le Fly, Ragin Cajun, and the rest of the iBankCoin founding fathers.  This is us, we look good:

This is the best holiday.  I hope you enjoy yours with family and/or friends.  Remember, friends are the family you choose.  This is my 30th Thanksgiving.  You start to notice how transitory beauty is come 30, I am thankful for this.

Tomorrow nearly 50 Italians will pack into a basement to eat 3 turkeys and trays of cannelloni in a tradition nearly as old as me.  What a blessing.

Thanks for reading along, contributing, and trading alongside me.  I have a huge appetite.  I wake up hungry every morning, hungry for gains.  Let’s keep at it.

There is an element of chase to the small caps this week.  When not much movement is happening, that which does move easily gathers attention.  It is like being at a dud of a venue, full of bearded men, when suddenly a bus drops off 30 rambunctious coeds from the nearby university.  Well, for now, my newest position is land of the duds–I bought some TINY shares.

I have watched this stock for months, oddly enough, eagerly waiting for some volume to come in.  Well, the party is not starting.  And it may never transpire.  But if it does, I will be here, shrink ray in tote, ready to ride the wave of the future in nano computing.

Something about binary being expanded from 0 and 1, to 0,1, or both 0 and 1 simultaneously.  That’s the game TINY is playing.  Supposedly it is a really big deal, like bigger than the latest biotech breakthrough.

NASDAQ futures are priced to gap up after a Globex session featuring normal range and volume.  Price held the upper quadrant of yesterday’s range before pressing up above the Tuesday high.  We managed to print a weak/double high at 4684.50, which was the overnight high yesterday morning also.  There are a ton of economic events scheduled today.  We already heard MBA Mortgage Applications at 7am.  We also had a data dump at 8:30am which included Personal Consumption Expenditure, Durable Goods, and Initial/Continuing Claims.  The initial reaction is slight selling.

We also have House Price Index at 9am, Markit Composite PMI at 9:45am, both New Homes Sales and the final U of M Confidence read for November at 10am.  Energy traders will also be watching the Baker Hughes Rig Count at 1pm.

Yesterday we printed a neutral extreme up.  Price opened gap down on news a Russian jet was downed by Turkish forces.  After some early buying, a strong wave of liquidation pushed in.  Buyers defended the conviction/trend day printed last Wednesday and the strong buying wave carried price up to close the overnight gap.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4665.50.  Just below at 4664.75 look for responsive buyers who work to take out the weak overnight high at 4684.50.  Look for responsive selling at 4689.75 and two way trade to ensue.

Hypo 2 buyers gap and go, take out overnight high 4684.50 early.  Look for responsive sellers up at 4694.50 then two way trade ensues, with sellers slowly working the gap fill down to 4665.50.

Hypo 3 sellers accelerate down through the open gap 4665.50 and set their sights on overnight low 4659.50.  Look for a responsive buyer down near 4648 and two way trade ensues.

Levels:

Today the market offered all the dog traders giblets.  It was just a little treat for their loyalty, for sticking around during the prep work.

Today printed a neutral extreme up.  When that rip wave came through before lunch I suspected we may print a close in the upper quadrant.  Well, we did, and because of it I added some longs into the bell.

Sure, 10:30am was a better buy point but you know what?  Hindsight is 20/20…The Pelicans were buying at 10:30am.  Hang out with them if you want better entries.

All the preparations have been made.  The dogs ate the giblets.  Tomorrow we put the turkey in the oven, Thursday we veg out on tryptophan, and Friday we take whack the market onto a fresh trajectory.

PS – Rose Colored Sunglasses logged a much needed victory today.

I know you guys just want to read about the latest KBIO bump, but I must share this beauty of a trade that just set up.

Ever since we went neutral this afternoon I have wanted a spot to go short.  When we came into the first level I could work (4677) there was no order flow to lean on.

Then, just in the final throws of the move, a huge order block showed up, was slammed into, and held like a champ.  The rest, as they say, is history, aka 18 handles off the highs.

Thin holiday markets rule:

Focus, fire gun.  All we need is somebody to lean on.