China – Cannons Are Firing

During times of conflict, there’s a saying in the market:  “you should buy when the cannons are firing and sell when the champagne corks are popping”.

More specifically, the current trade war between the US and China is likely to be resolved and the 20% correction in Chinese equity indexes may be looking overdone.

The IZZ iShares ETF provides exposure to large cap Chinese stocks. We see a buy side opportunity at $57.00


China & Asia Top 50

In the second half of 2018, value in oversold Asian markets will likely produce a good long-term entry level.

Our preferred ETFs are the IZZ China Large-Cap and the IAA, iShares Asia top 50.

Chinese indices are now down between 10 – 20% this year.

iShares Asia 50

iShares China Large Cap

ETF Watch – IZZ China Large Cap

Our Algo Engine has flagged the higher low formation in the iShares ETF, IZZ China Large Cap.

IZZ has retraced from $65 last month to a low of $58.61 in Thursday’s session.  Following stronger data out of China on Friday, the ETF had a strong close to the week.

Consider buying with a stop-loss below $57.40