Sector Spin – Chinese Internet Stocks
By Terry Long November 12, 2020
Welcome to the Sector Spin with Terry. In this new video series, I’ll be sharing with you what I’m watching each week in various industry subgroups. This week, I’m taking a look at Chinese Internet stocks in the Technology Sector.
Starting with the weekly RRG chart, this group has a history of leading performers but recently has been in a period of relative weakness which may be at a turning point again. For the first half of this year, many of these stocks held leadership positions relative to the benchmark S&P. Starting in mid to late August, I noticed the beginning of momentum decay, pushing most of these stocks down into the Weakening Quadrant.
By the first of October, BABA was the sole to remain in the Leading Quadrant. About that same time, hooks had begun to form in most that had dropped down into the weakening and even Lagging quadrant. Several have now joined BABA back in the Leading Quadrant. PDD up over 20% today after blowout earnings, I also think GSX is possibly nearing the end of consolidation, too
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Trading Analysis Terry Long
Research Director
Senior Technical Advisor at TradingAnalysis.com – a research service created to share investing ideas and strategies with an emphasis on options trading leveraging Elliott Wave Theory and Fibonacci analysis.
My area of emphasis is geared towards the US Markets (equities and index futures), highlighting sector trends, key developments, and mergers and acquisitions. I am a retired chemical engineering professional with a diverse engineering and economics background and detailed knowledge in petrochemical and related industries. I have a personal interest in finance, investing and specifically options trading including a deep understanding of applied Elliott Wave Theory.