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Chinastocks

Chinas bear market correlates to NEO, buy the trade war dipAll explained in detail on this graph: But the simplification of a complex economic dynamic: Certain major world market index over the last 12 months highly correlated with with regional digital assets. Overnight, Chinese stocks ceded their ranking as the second-largest equity market in the world amid an elevation in trade tensions after the Trump administration said it was considering increasing the initial proposed tariff. Given China and Asian markets are major contributors to the value that NEO (and BTC) holds, NEO (and BTC) have taken a tumble. This is despite US equity markets being on the rise. In my opinion an exponential recovery of BTC, NEO and GAS is imminent. The suppression CHINAA50, BTCUSD NEOUSD and GASUSD from a temporary trade war is an opportunity to buy these assets at an already discounted price. Given that NEO is a Chinese based blockchain its not overly surprising that NEO and its utility token GAS has had an amplified price deterioration making then even more of a buying opportunity.
BITFINEX:NEOUSDLong
by warrenhochfeld
5
A-Share dilemma - break of trend or meteroic rise?Looking at the long-term trend, the Chinese A-shares are trading within a pretty well defined range since the mid 1990's. This includes two meteroic bubbles that have risen as quickly as they've crashed. Despite these bubbles forming, they haven't caused any massive damage to the Chinese economy such as what we saw when other large bubbles broke down (such as Japan's 1980's bubble, or the US dotcom bubble). Interestingly, each time the trend hit the lower end of the range, we've seen the a-shares shoot up meteroically. Fundamentally, I'm rather bearish on the Chinese market right now. They have an insane debt bubble combined with the news events coming from "trade war" problems. Most of the bubbles in the Shanghai Composite have come as a result of the Chinese govt's constant injections of liquidity and easing. This provides a window into a view of the debt bubble. Recently, the lower end of the range was once again just hit, and we also have come to learn that the Chinese gov't is already back to monetary easing through various means. Based on history, you would think we may see another meteoric rise in the Shanghai composite index, but I'm not sure that will happen this time around. China is painted into a more difficult corner this time around, and they are more wary about stock bubbles like this nowadays. I think given the fundamental picture, we're more likely to break the long-term trend downward. If the debt bubble does in fact burst, this will certainly be the case. With that said, I think it may be prudent to buy some deep OTM leap calls on the Shanghai Composite (you can use the ETF $ASHR) to capitalize on a potential blowoff bubble formed from more easing once again.
SShort
by GTStockmaster
1
YY - Slaughtered after earningsThe fundamentals: YY is a Chinese company with a popular streaming platform. Below is the summary of their latest earnings report: YY reported revenue of $518 million, beating analyst estimates for $487.8 million and up 43% in local currency. It reported adjusted earnings of $1.72 per share, beating Wall Street's view of $1.52 With social platforms, it is beneficial to consider active user growth in addition to the top and bottom line. "Its monthly active user base for mobile livestreaming service rose 24% from the year-ago period to more than 77.6 million" Analysts are optimistic about YY's future, with the majority upgrading to a Buy/Strong buy. The technicals: The run up to earnings set expectations far too high, and it is only natural that YY is seeing a massive 10% slump immediately after, even with a beat, similar to NVDA. It should be noted that with this slump, YY has underperformed QQQ YTD. 50&200EMA still indicates that the bullish momentum is there. The play: A good entry level is around $108, where the price seemed to settle before the massive run up to $124 right before earnings. Options buyers should wait for IV to settle down more before taking a position.
NASDAQ:YYLong
by dvdgege5