From the desk of Steve Strazza @Sstrazza
Sentiment has not been good for Chinese Equities with a handful of recent sanctions adding to the general uncertainty around China-US relations. For the most part, we’re seeing this reflected in price as the Shanghai Composite and iShares China Large-Cap ETF (FXI) are trading at multi-month lows relative to the S&P 500.
Interestingly enough, the area being hit hardest with negative headlines is one of the few bright spots in China’s market right now… Technology and Internet stocks.
In this post, we take a look at the improving relative strength from this group and offer trade ideas in some of its leading stocks.