This was Meta after reporting on Oct ‘22
Here’s something to remember, the worse the news sounds and the more despondent sentiments become, the more attractive a massive business like Alibaba becomes. Let the voting machine do what they love to do - talk, bully and ridicule, but be patient for the weighing scale to kick in. For Meta’s case, that weighing scale kicked in very quickly, but for Baba it may take some time for that to materialize.
The strongest assets that will allow us to be even more profitable investors than institutions, is time and patience. Funds don’t like to have losing Chinese companies in their reports to clients, so panic selling will be common, and they switch in and out of positions like yesterday’s laundry.
I’m bullish of “my” people’s, aka PRC’s capacity to generate mountains of cash, and along with that, the development of the largest and most economically robust middle class in the world., I’m buying China, especially at these basement prices.
For those who are discouraged by the xenophobic, Anti-China narrative that has intensified in these past few years, I urge you to take a step back, look at the bigger picture and tune out the noise. If you still believe in China’s economic prospects and that we aren’t observing “Peak China” (which is an absolutely ludicrous notion, considering they just got through 3 traumatic years of Zero-Covid); then what would be a better time to buy than now? When China finds her sea legs again, it may be too late.
In Buffett’s words : “If you wait for the robins, spring will be over.”
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Risky Investor : Sorry, but it's not about how good/profitable a company is, but about what the market makers want. If they want, the share price will completely tumble or pumped to the moon. Retail investors are there to follow and hope to make some profit. The whole stock market is a giant scheme wherein a lot of stocks with high evaluations are just from the market makers without matching earnings. Some stocks have P/E of 100s
DenkamweOP Risky Investor: I’m not here to follow the herd. But follow what my research and contrarian worldview tells me.
Risky Investor DenkamweOP: I used to think like u. But the market makers have decided every move months ahead. They may change but it would take time.
DenkamweOP : Also, if you believe the game is rigged. Then it’s rigged. And you will feel absolutely helpless, so why play the game at these odds? Why don’t you find games with favourable odds - such as an asymmetric bet that no one wants to take because the market is too bearish about?
Risky Investor DenkamweOP: One example is here. GE stock was on an upward trend with corrective moves at about 50% fib levels. Even with an outstanding earning report, the spike immediately squashed back to the pre-determined trajectory.
DenkamweOP : Sorry, but I don’t live and die on daily charts. Price movement or volatility creates buying opportunities (or selling ones if my asset becomes overvalued)
DenkamweOP : Institutions can buy and sell as often as they please. They have capital, size and the patience of a 5 year old. They have hundreds of clients to please. I’m investing my savings and hard earned money, so I’m only accountable to myself. Not the herd.
Risky Investor : Then, there was a clear triangle consolidation with classic breakout and retest. Litterally, for this week breakouts, u can find the same pattern for many other stocks such as Nvidia, AMD, and Micron Technology. They concertedly regulate the up and down.
Risky Investor DenkamweOP: I am just trying to help, because the sooner u realize what dictate pricing, the better your trades. probabl, a combination of research and getting hints from market makers is the best. Overall, BABA should be solid 90+ if not 100+. But it might take a while to get there. It's just a painful short term in the 80s range
DenkamweOP Risky Investor: Alright gotcha. Pricing is useful to determine buy or sell zones I agree.