Scale out before this POPSWhen the mainstream media was telling you that China was not investable, I was working hard on my TA and buying positions. I consider myself a contrarian investor, this is where the best opportunities present themselves. If you follow my trades here you will know I had called out the start of the new bull run in the Hong Kong exchange, or the dead-cat bounce spending on how you look at it, very early on.
I took the basket approach on a handful of Chinese names. Namely Alibaba, BYD, Tencent, Baidu and Pop Mart.
This worked out very well for me (except Baidu) but nothing better than Pop Mart, unfortunately the smallest position of the lot.
So why a Chinese toy company? If you have children into the latest and hottest toys, I suggest you look into the parent company. This particular company had a beautiful chart as it had broken the end of the downtrend, along with a reclaim of the POC. What followed was a gargantuan 1000% rise. I have taken 50% off the table today as I see this as the final wave of the Wave 5 supercycle. I do think this still has legs and profits will continue to soar for the next quarter or two, but I’m not greedy, this has exceeded my expectations and then some. So I have started to scale out, this is the way.
Not financial advice, do what’s best for you
