My Secret Love Affair šŸ„°

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 GainersšŸ“ˆ & LosersšŸ“‰

Our Biggest Gainers & Losers of the Day in the $100,000 Build Portfolio

For the 10th February 2025:

  • My Secret Love Affair šŸ„°

  • Donā€™t Waste Your Time šŸ’…

My Secret Love Affair šŸ„° 

Will it ever end? Will I ever not be smitten with Chinese stocks?

I doubt it. Not the whole time theyā€™ve got these chronically low valuations, anyway.

Over 7.5% gains today for Alibaba

Alibaba was my top gainer today rallying over 7.5%. That puts them up over 36% in the last month. šŸ”„ So why the sudden hot streak? And is it too late to jump in now?

Letā€™s find out.

Buzz Word Time šŸ’« 

Remember DeepSeek? The AI model out of China that sent the US market crashing & Asian markets flying? Well, it turns out that if youā€™re a stock out of China and you say ā€œAIā€ in the mirror three times your stock price moons now.

Alibabaā€™s cloud division just dropped Qwen2.5-VL, an AI model that can analyze videos, parse files, count objects in images, & even control a PC. Oh, & itā€™s reportedly outperforming GPT-4, Claude 3.5, & Gemini 2.0 Flash in key benchmarks.

It was like a baby DeepSeek announcement.

Investors are Behind The HypešŸ“ˆ

Alibabaā€™s been stuck in a rut. Itā€™s been trading between $75 and $100-$120ish for the past 2 years. And tbh Iā€™m not complaining. Itā€™s been a swing traders dream. But things could be changing.

JPMorganā€™s Alex Yao just met with 100+ investors & the vibe around Alibaba is shifting. Investors are feeling bullish.

BABA stock is gaining momentum across all time frames

If you donā€™t believe the words, take a look at the charts. Over 36% gains in the past month, 13% in the last 5 days. Momentum is building.

Big Money is Moving InšŸ’°

David Tepperā€™s Appaloosa Management just upped its Alibaba stake by 18% in Q4. He came out with a ā€œBuy everything Chinaā€ statement a little while back. Turns out heā€™s putting his money where his mouth is.

David Tepper has been bullish on China for a while now & upping the cash invested from his fund

And if a guy worth over $21 billion is taking a big swing at it, who am I to disagree?

Big PicturešŸ”®

Alibaba has been stuck in stock purgatory for a while. It makes me nervous to go heavy adding size when weā€™re approaching a level where I usually take profits. That top blue line is what I aim for to close out.

BABA has been roung bound for the past 2 years

But the AI + cloud hype train is bringing it back to life. The question Iā€™ve got to figure out now is is it a real comeback? Or is it short lived hype?

My honest answer right now is ā€œI donā€™t knowā€. If we get a strong breakout above $120 that holds, it might be time to look for new highs.

Average profit of 29.71% on my Alibaba positions

Iā€™m happy to hold my current positions & see how it moves for now. Any weakness or strong volume to the downside & Iā€™ll take profits ready to buy back in at $80.

Donā€™t Waste Your Time šŸ’… 

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