Apple & China: The Real Trade For The Big Profits!

apple and China that is the story on Wall Street today is there an attractive swing twe to be had yes on the long and the short side but not in the stocks you think let's talk about it [Music] welcome to hot trades of the day your daily show that focuses exclusively on trading ideas for swing trades for the coming days for the coming weeks my name is Daniel heli head of trading here at Bull markets lifestyle hit the Subscribe button be so kind leave a like it helps us and it costs you 5 seconds so how about do something good for someone for 5 seconds great return on investment now let's talk return on investment Apple revealed the new iPhone and the first real deeper Endeavor into AI that was the big story what do we see in the charts well I see a big nothing Burger to be honest this is the chart pretty much since last year and you see that's really not a chart where I need to do anything we're making a lower high that's not great yes we had that all-time high breakout we retested it successfully went up significantly but didn't make a higher high as I said the RSI looks really bad we have a negative Divergence clearly compared to June meaning the Apple stock is higher than it was in June but the RSI is negative and it's actually under 50 the volume is me the chart is me right now I wouldn't do anything yes I do like these two long Wicks that we see here which means that the weakness in anything around 218 has been bought in the past days but overall we have a medium downtrend Apple basically is now out of any bullets in the chamber as far as the fundamentals are concerned what is going happen now that will support the Apple stock and get new excitement going probably the numbers of the new iPhone and that'll take a while the real story to play Apple is obviously the Chinese market and in China Apple will be required to partner with a Chinese company for AI so that is the story that is the play that's where you're going to make the great swing trade and the big profits because the Chinese stocks they have been beaten into the ground and it leads us to the next hot story which is by uh Alibaba Group which today is jumping up around 4% after it got listed on the mainland Stock Exchange in China so far it's been an R for the US and Hong Kong now the Chinese can buy the stock as well and in the past with some other companies like tensent this listing in China has been a huge success why well in the Chinese Mainland markets Short Selling is forbidden you can only go long so that is a huge huge support for Alibaba group as we have new shareholders coming in but no new short sellers we look at the long-term Trend looks pretty good but do we need to buy it right now I don't think so we're kind of in the middle we're hovering right around this pivot line if we look at the pre-market we are up here where we have a double resistance zone of this downtrend that goes back to 2023 so that's significant we have an RSI that's pretty weak around the 50 we with a negative Divergence as well I don't think we need to do anything here but if we get Alibaba on weakness this will be very interesting a stock that I would like to put your attention to is PDD Holdings now this stock has gotten completely lost after lackluster actually you know what the earnings weren't even bad they weren't just as good as anticipated because this was one of the very few Chinese stocks that was actually doing well I show you the long-term Trend here in a minute exactly two weeks ago when the bad earnings came out when we saw this right here this crash the selloff uh of PDD Holdings which is the mother company of Teemu the new super discount Ecommerce um giant and I told you two weeks ago PDD is a buy at this long longterm uptrend and a support Zone around 90 to 91 you can look up the video you can see there so look at this we went right into $90 that was the buy Zone it held and now things are looking good we're starting to build a bottoming structure around this long-term downtrend and the upper end of the support band and look at this this one goes all the way back this uptrend to 2022 so this is significant if if this holds if this uptrend holds and is able to get over this line right here so 104 you'll already be up like 10 11 12% if you get in around 91 92 now the 90 is probably gone then we will see real momentum in this stock that right now has been forgotten I told you to go long at at the uptrend you could have done it perfectly to weeks ago and we are sitting pretty now nothing has happened again but look at this structure this looks very nice the only thing that doesn't look good right now is the volume is low but that makes sense nobody's buying right now that is actually in advantage and the RSI still massively oversold now if you want to go short in the Chinese market check out C limited another e-commerce play I told you at also two weeks ago to short this stock at around levels I think we're like around 7980 so this has been a really nice short trade and this keeps looking good shortterm downtrend midterm uptrend broken RSI is going down now we are a little bit in a as you can see here we have support around 76 and this Gap area here to 74 we will probably get a short-term rebound but if we see anything like this here we have a test of the downtrend and then a big wig rejection where the the test is sold off towards the end of the trading that is our signal to hammer the shorts to push the short side on C limited and tomorrow we'll go into the China story for the Apple trade because that is really the interesting trade for the Apple story for the next six month not the Apple stock itself that's you know it's cute and everything if we get it at prices around 206 fine then I get interested but right now the Chinese story that's going to be the explosive trade we will talk about that tomorrow that's it for today have a great trading day remember you don't have to be in every trade you just have to be in the right trades see you tomorrow bye-bye