«Now that’s a change in character.»

Traders,

Stocks are on the mend. The S&P 500 is 8% off the lows, and the Russell 2000 is up 10%. But do you know which industry has had the most impressive rebound? Chinese internet stocks. KWEB is 67% off the lows and just broke its long-term trendline and the 20-week moving average for the first time since its harrowing descent began.

For context, Chinese tech stocks have been beaten worse than virtually anyone else. The Kraneshares Chinese Internet ETF (KWEB) is featured in today’s chart of the day and shows the epic unraveling. From tip to tip, KWEB fell 81%.

Do you find it as curious as I that investors are finally dumpster diving? It’s been agest since this group illustrated relative strength. Bulls will argue it’s a sign that we’ve finally seen a washout, that investors have finally priced in the worst – at least for Chinese tech stocks. Bears will contend it’s all a ruse.

Time will tell who’s right, but I’m liking bulls chances so far.

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Video of the Day: How to Use Delta Probability of Touch

Matt and Tim Teach the Delta Probability of Touch and how traders should use it to their advantage.

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Chart of the Day: Chinese Internet Stocks ($KWEB)

KWEB is flexing some serious muscle off the lows by breaking above its trendline and the 20-week MA for the first time since the bear market began.

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Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

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