Looking at the bigger picture, when we compare Chinese stocks to their U.S. counterparts, the relative trend sits at a critical support level.
Take a look at the Shanghai Composite $SSEC versus the S&P 500 $SPX over the last three decades:
This ratio is at a critical inflection point, suggesting a trend reversal and outperformance from Chinese stocks could be on the cusp of beginning.
I can't think of a more logical place for this to happen than here.
How strong the leadership will be? I don't know, but I do know that they're up to something.
Now, it’s all about waiting for the data to confirm or invalidate this thesis.
This trade is already paying off.
We just sold the double in our FXI, JD, and TME calls on Breakout Multiplier today!
This is our rule of thumb: lower the cost basis to zero, and eliminate the chance of losing money on these trades, even if they turn against us from here.
Now, it’s all about the “free ride” on the remaining calls—with up to 3 months for them to keep working.
