Joined Jan 27, 2008
7,392 Blog Posts

China stocks surge after new schemes to boost their market

China has been on fire the last two days thanks in part to the following headline:

FXI, China’s large cap ETF, recovered both the 50 & 20 day moving average today, $AAPL also did the same thing. Did the forced buying from China help us find a short term low? Or, is it back to business as usual looking for puts every time we close a 5min candle below vwap?

One name I’m invested in here on the long side is $BABA, which displays one of my favorite setups. Let’s go ahead and walk through multiple timeframes to see why this has become my favorite setup.

1.) China. Paying attention to themes can pay big, if you can get the theme right. Let’s see if the China theme sticks around. $PDD just smashed earnings and $BIDU did last week, both helping the cause.

2.) Multiple Timeframe analysis. Pretty much a fancy word for looking at charts in different time frames. I like to start with the longest time frame first, so let’s look at the monthly chart for BABA.

– July was a strong month for BABA, breaking and closing above the 20day moving average. In August, the company reports a blockbuster quarter, yet sold off with the overall market retesting that 20day moving average on the monthly chart. Well thanks to the new China orders, it looks like we will close above the 20 day moving average on the monthly chart, which shows a change in trend.

Let’s now take a glance at the weekly chart, this is the chart I like to dive into volume profiles to see if I can find any volume pockets of note. This helps tremendously when looking for price targets. For $BABA things start to get thin above $120, which should take this thing closer to $150-160 to fill this pocket. However, we still have a ton of volume to work through in the short term, so it’s not going to be a straight shot. I do like the inverse head and shoulders pattern = bullish.


Now to the daily chart, which shows a pattern I love to see develop. Notice all the moving averages, notice how they all converge at the $91-92 area, which is right below price. The creates support underneath and signals a trend change. I now want to see price hold the moving averages to support the trade:


In conclusion, short term we have some volume big volume to work though, but price is above all major moving averages providing some short term support. Over $100 and we may get a breakout (see above chart blue dotted line), over $120 and we may get a Kirby Vacuum up to $150.

Disclaimer: Long $BABA common and calls at time of post.

Comments »

Weekend Momentum Scan

So China saved us on Friday and we finally got the $100 roll for $BABA. Judging by $KWEB, a popular ticker on Friday’s scans, I’d venture out to say we’re just getting started….

Running a quick momentum scan at the close Friday, here are the names I selected to watch on Monday. All stocks traded above average volume and have ripe technical setups. This is a recipe I use over and over again inside Stocklabs— I use my scans to find the volume– then find the best technical setup to trade. The following are on watch this week…

Have a good weekend all!

Comments »


$BABA is fresh on the scans this morning along with $NIO and $XPEV. $BABA technically looks poised to hit $100 sooner than later and I’m looking for calls in here today. Here’s a look at your morning Stocklabs scan;

Comments »

The Very Best Charts

This weekend I decided to queue up a quick screen to find the very best technical scores within the Stocklabs software. Below you can find my findings, which some may surprise you. We’ll start of with JNJ…

Despite giving people cancer the stock still has one of the best technical scores around. And, if you’ve been looking for alpha the last few days as the market declined, JNJ was the play:

The banks also have had a few good weeks, and I was pretty surprised to see $WAL with a tech score greater than 4. $BAC also made the list, along with $SUPV

Oil was the standout in this weekend’s screen as hurricane season is just underway. I believe there is an area of interest right now that might land inside the Gulf and possibly halt production. Whatever the case, here are some good looking charts within the industry:

Indeed, their has been a rotation out of tech and into banks, oil, and staples. For the current full list of top technical scores, I’ve imported the list to finviz for your viewing pleasure: CLICK HERE

Member can bookmark the top technical scores HERE.

Comments »


$HOOD is back on scan this morning and worth highlighting due to it’s massive volume profile. Before we get into the chart, here are some of today’s movers experiencing above average volume:


Now back to $HOOD, which we know is trading above average volume thanks to the scan above, shows a massive volume void that could potential take this stock to $33/share. It’s just now getting into open space, and worth watching every time it lands on scan:

Comments »


The large caps are on the move this morning thanks to a favorable CPI number. Many of the names we were watching are finally breaking to the upside. META finally gets through $300 and is sprinting, $BABA looks like a slam dunk for the $100 roll trade, NVDA is tearing apart any short seller who bets against it, and $GOOGL looks to be just getting started.

I took some $GOOGL options this morning. Good luck trading all…

Comments »