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My Secret Love Affair š„°
Gainersš & Losersš
Our Biggest Gainers & Losers of the Day in the $100,000 Build Portfolio
For the 10th February 2025:
My Secret Love Affair š„°
Donāt Waste Your Time š
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My Secret Love Affair š„°
Will it ever end? Will I ever not be smitten with Chinese stocks?
I doubt it. Not the whole time theyāve got these chronically low valuations, anyway.
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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. š„ So why the sudden hot streak? And is it too late to jump in now?
Letās find out.
Buzz Word Time š«
Remember DeepSeek? The AI model out of China that sent the US market crashing & Asian markets flying? Well, it turns out that if youāre a stock out of China and you say āAIā in the mirror three times your stock price moons now.
Alibabaās 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, & itās 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 Hypeš
Alibabaās been stuck in a rut. Itās been trading between $75 and $100-$120ish for the past 2 years. And tbh Iām not complaining. Itās been a swing traders dream. But things could be changing.
JPMorganās Alex Yao just met with 100+ investors & the vibe around Alibaba is shifting. Investors are feeling bullish.
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BABA stock is gaining momentum across all time frames
If you donāt 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 Inš°
David Tepperās Appaloosa Management just upped its Alibaba stake by 18% in Q4. He came out with a āBuy everything Chinaā statement a little while back. Turns out heās putting his money where his mouth is.
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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 Pictureš®
Alibaba has been stuck in stock purgatory for a while. It makes me nervous to go heavy adding size when weāre approaching a level where I usually take profits. That top blue line is what I aim for to close out.
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BABA has been roung bound for the past 2 years
But the AI + cloud hype train is bringing it back to life. The question Iāve got to figure out now is is it a real comeback? Or is it short lived hype?
My honest answer right now is āI donāt knowā. If we get a strong breakout above $120 that holds, it might be time to look for new highs.
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Average profit of 29.71% on my Alibaba positions
Iām happy to hold my current positions & see how it moves for now. Any weakness or strong volume to the downside & Iāll take profits ready to buy back in at $80.
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Donāt Waste Your Time š
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What did you think of today's update? |
Thatās all! See you same time tomorrow š
P.S Hit reply & let me know what you thought of todayās newsletter. All feedback is welcomed ā¤ļø
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