Dead Cat Bounce Or Something More:
We talk a little more about the KWEB later in this note and it is hard to get excited about a name nearly 50% off its most recent 52-week highs, but there could be some green shoots here. The ETF is going for a rare 3 week winning streak in the last one-year period, and it is doing it in style so far. It is higher by 5% this week headed into Wednesday, and this is after a fractional gain last week before another robust move of 8.2% the week ending 10/8. The bulls are digging in here as it registered back to back 9% WEEKLY gains the weeks ending 8/27 and 9/3 (it has registered a lengthy decline from near the very round par number this February). I admire the higher low it put in a couple of weeks back, and one has to be somewhat careful as news from the region can spoil this nascent move at a moment’s notice. PDD seems stuck at the very round par number here, and another top ten holding in BILI made a lower low a couple of weeks back. Focus on the better-looking charts within.