2024-04-09 13:16:04 ET
Summary
- China stocks rebounded since January, outperforming the S&P 500 ETF but remain in a protracted downtrend since early 2021.
- KWEB sports very weak momentum but a low PEG ratio, suggesting that it could be a solid long-term value.
- But with a bearish chart and a risky allocation, I see the ETF as a hold until momentum improves.
- I highlight key price levels to monitor on the chart.
Macro investors continue to watch what's happening in China. U.S. Treasury Secretary Janet Yellen was in Beijing earlier this week, calling for changes in industrial policy as cheap Chinese goods flood the global economy. Amid concerning trends in China's household consumption and business overinvestment, many equity ETFs tracking the country's stocks have been in protracted bear markets for more than three years....
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KWEB: A Compelling Valuation, But The Technicals Must Turn Around