Stock Trends

China focus

Good morning,

From a single stock perspective, there’s no doubt that Oracle is this week’s biggest story.

A 36% move (over $240 billion added in market capitalization) for a 35-year-old stock that was already sitting near all-time highs and strongly outperforming YTD is crazy town.

We’ll look at the chart of Oracle today, but I want to make sure we keep our eye on the ball.

One of the biggest stories and global trends that keeps on trucking is China and emerging markets. Today’s report will start off with seven of the top Chinese stocks that American investors can take advantage of.

We’ll also review:

• Healthcare and biotech

• Software stocks trying to bottom

• Hot List updates

• and more!

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China focus

NetEase continues to pay

We’ve been looking at NetEase ever since the February Overtime report on China and the stock continues to work. It’s broken out of a four-year base and hit fresh all-time highs yesterday, even when most of the other stocks we’re about to look at were slightly lower on the day.

New multi-year highs for Tencent

Tencent is the largest weight in our ETF portfolio holding MCHI (17% weight) and the KWEB Chinese Internet ETF (10.8% weight). It’s certainly a tailwind to both that this online giant is at 52-week highs and remains in a strong uptrend vs. the S&P 500. No reason to think the all-time highs ($99.40) aren’t in play here.

Alibaba pops 23% in 7 days

After a quiet August holding just above the 50-day, BABA has exploded higher for a 23% gain in 7 days. The March highs are a logical place to see a brief pause, but investors should view any consolidation as an opportunity to get long.

Baidu completing a major bottom

Now, for a few laggards. BIDU has been one of the weakest major China internet stocks, but even it is finally bottoming. It’s surged to the highest level since last October and a move above $115 targets $150.

Even JD.com seeing a momentum surge