This post Book 50% Gains on Your Red-Hot Chinese Tech Play appeared first on Daily Reckoning.
Facebook shares are up 13% since June 30th.
Apple stock has gained almost 12%.
Netflix has jumped 21%.
These gains are nothing to scoff at. We’re smack in the middle of a roaring bull market. The household name tech stocks are dominating the averages and pushing to new all-time highs almost every week. You deserve a pat on the back if you’ve held any of these stocks in your trading portfolio in 2017. The results speak for themselves.
But I have some news for you…
These American tech stocks aren’t the best performing names on the market. Not by a long shot.
If we’re comparing red-hot tech stocks, China has the U.S. beat. It’s not even close. Forget about Facebook and Apple. China’s tech ADRs are dominating the daily gainers lists. If you’ve followed along at home for the past few months, you’ve built an incredible stable of trades in this space that continues to pump out double-digit gains. Now it’s time to ring the register and book some well-deserved profits.
First, let’s check out a couple of your closed positions from earlier this year. We were able to harness a fast 50% gain in just a few weeks betting on Momo Inc. (NASDAQ:MOMO). Alibaba (NYSE:BABA) was another solid winner from our trading portfolio. We cashed in our chips on this trade in early May for gains of 23%.
When it comes to fast gains, not many stocks on the market compare to Chinese tech. What we’re seeing in these Chinese stocks right now are huge momentum moves producing extraordinary short-term gains. We said from the very start of Chinese ADR domination that we won’t know how long this environment will last.
But that doesn’t mean we can’t bank short-term trading profits as these opportunities come into play.
Let’s dive into our list of winners…
First up is Baidu Inc. (NASDAQ:BIDU).
BIDU finally posted a secondary breakout in September after weeks of consolidating its summer gains. The stock is now up an incredible 30% so far during the third quarter – a feat none of the FAANGs have matched.
You might recall that BIDU lagged many of its peers earlier this year. Not anymore. Thanks to its big third-quarter push, this stock is finally delivering the goods.
Then there’s 58.com Inc. (NASDAQ:WUBA), the Craigslist of China. This stock has blown away all expectations since we jumped onboard in late June (not all Chinese tech rallies are based solely on hype. Some of these Chinese stocks are posting breakneck growth!) After beating earnings expectations, shares jumped 20%. And they didn’t look back. As of this morning, you’re sitting on open gains north of 53%.
It’s time to ring the register! Let’s take our WUBA gains off the table to start the week. While I don’t see signs that WUBA is headed for a slump, it never hurts to book profits. That will free up some trading dollars for other opportunities. We’re in a great environment for short-term …read more
Source:: Daily Reckoning feed
The post Book 50% Gains on Your Red-Hot Chinese Tech Play appeared first on Junior Mining Analyst.