Start the conversation
When I started Total Wealth, I promised you that I would cover the best companies, trends, and investment opportunities I could find. I also promised you a look at the specific tactics needed for big profits whenever I saw special situations developing.
Today, I'm going to keep that promise with a look at Tuesday's trading and a classic chart pattern in formation that can yield big profits in the hands of those who know how to trade it.
I'm referring, of course, to the fact that markets rocketed higher following a speech on Tuesday by Chinese President Xi Jinping at the Boao Forum for Asia, in which he highlighted plans to open up the nation's domestic economy to foreign businesses.
Specifically, Xi stated that China will increase imports, significantly lower tariffs on imported automobiles, speed up financial market development, and boost enforcement on intellectual property protection.
Strategically, we've got this covered and have had it covered for a long time. If you're just joining us – you're in for a profitable treat!
Here are just a few of the companies we've discussed:
- Tesla Inc. (Nasdaq: TSLA): China is Team Musk's second-largest market, with sales of more than $2 billion there in 2017 alone. Shorting a company like Tesla right now might prove to be full of profit potential. In fact, premium subscribers were recommended just that at a time when the stock was moving down in the past, and they had the opportunity to close out on two legs of the same trade for a total of 121.41% gains. Just click here for more information about this strategy.
- BlackRock Inc. (NYSE: BLK): CEO Larry Fink laid out why China is a critical priority in his company's 2017 annual report, citing the same three primary "Unstoppable Trend" subsets we prioritize when it comes to the Red Dragon as being the driver… demographics, economic, and regulatory shifts.
- Alibaba Group Holding Ltd. (NYSE: BABA): The e-commerce giant is the only company capable of giving Amazon.com Inc. (Nasdaq: AMZN) a true run for its money and – gasp – potentially winning the fight. It's working on a plan to list shares in mainland China, not Hong Kong, as many people believe and as has been widely reported. This could immediately unlock a huge pool of captive money that could double shares when Chinese investors have access through a secondary listing.
Tactically, though, the situation is very different.
I think there's a good case to be made that Xi is setting up a world-class "fake-out"… not the "breakout" that everybody thinks as I watch and while I write (Tuesday, April 10). It's based on what's called a "descending triangle pattern."
You're not alone if you've never heard of it.
Triangle patterns are different from the classic bull and bear flag patterns, below, which most investors typically learn when they're introduced to technical analysis for the first time.
Bull and bear flags have two defining features. The trading action is constant, and the support and resistance levels needed to chart the pattern are parallel in both directions, up and down.
Now, here's the triangle.
There are three types of triangles, and in each case, you have converging prices representing support and resistance as well as erratic trading.
In this case, it's the one on the right that concerns us… the descending triangle.
That's What Prices "Look" Like at the Moment
Let me show you.
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.