I usually don’t discuss macroeconomics too much, particularly when it comes to day trading.
After all, many of the stocks we day trade are what I call “crappy penny stocks,” whose price movements have little to do with what’s going on in the economy or the rest of the world.
In fact, many of those companies may not even be around in the near future, and we don’t care because we’re only trying to capitalize on the 24-hour price action.
With all that being said, a group of day-trade stocks has been popping between now and last week, and it has everything to do with macroeconomics.
If you haven’t heard, last week, the People’s Bank of China (China’s central bank) said enough was enough with the struggling economy.
It initiated a package of stimulus measures designed to boost the economy, including cutting interest rates, lowering banks’ cash reserve ratios, and reducing rates on existing mortgages.
The result was a Chinese stock market rally not seen since 2008.
And Hong Kong’s Hang Seng Index had a similar reaction.
By the way, Matt McCall and I are doing a deep dive into the China stock story during today’s SteadyTrade podcast. Be sure to tune in at noon Eastern today.
The podcast is completely free. Watch or listen (or both!) to it here.
So, what does everything happening in China have to do with us?
A lot!
Low-priced Chinese stocks started going crazy last week, all due to the Chinese central bank’s efforts to revive the economy.
To be clear, and as I have repeatedly said during my StocksToTrade Advisory and Premarket Prep webcasts, these stocks are for day trading only.
They are not what I consider “real” stocks… These are low-quality companies. They are not investable, and they are certainly not suitable for a buy-and-hold strategy or even swing trading.
But they are perfect for capturing crazy price movements and big wins within a day trading timeframe.
These stock setups are everywhere…
And some of them keep showing up!
Take Fangdd Network Group Ltd. (NASDAQ: DUO), which is based out of Shenzhen, China.
It first showed up on our radar last Thursday morning when Oracle gave us a green entry signal at $0.79 per share.
DUO 09/26/24 Intraday, 1-Minute Candles Chart; SteadyTrade
After breaking through the entry, it quickly spiked to a high of $1.43 for a return of 81%*.
And this past Monday, DUO was back again. We got the Oracle entry signal of $1.79 per share.
DUO 09/30/24 Intraday, 1-MInute Candles Chart; SteadyTrade
This time it ended up returning 100%*!
And even yesterday, we got a 15.32%* return from DUO after it hit Oracle’s entry price.
Monday was a big day for the following China/Hong Kong stocks…
Kaxin Holdings (NASDAQ: KXIN) returned 22.92%* from Oracle signal to high of the day.
KXIN Intraday, 1-Minute Candles Chart; SteadyTrade
XChange Tec. Inc. (NASDAQ: XHG) gained 35.75%*.
XHG Intraday, 1-Minute Candles Chart; SteadyTrade
And Garden Stage Ltd. (NASDAQ: GSIW) had a 35.63%* win.
GSIW Intraday, 1-Minute Candles Chart; SteadyTrade
In case you hadn’t noticed, every single one of these China trades was nailed by Oracle.
If you aren’t familiar with our Oracle tool, you’re really missing out.
Oracle is our proprietary algorithmic system that scans the market every morning to gather critical data. It then generates a list of 15 to 20 stocks based on criteria such as price range, volatility and premarket volume.
Along with that list, you get an entry signal (green for long, red for short), and an entry price so you know exactly when to trade the stock.
Most of the above stocks wouldn’t have been on our radar without Oracle.
Get the tool I can’t trade without!
We also offer live demos every day where you can see Oracle in action. These demos are completely free and run all day long. Click here, drop your info, and join a session
My Final Thoughts…
So, those are the hot stocks in my crosshairs right now.
And remember, these stocks are for day trading only.
I think this China stock surge will go on for a little while.
Remember to tune in to my SteadyTrade podcast with Matt McCall today at noon Eastern for more of our thoughts on that subject.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
As a trader, do you want to be stuck on your laptop all day, every day?
I’m guessing the answer is no…
My colleague and seasoned trader, Tim Sykes, has developed an under-the-radar style of trading that will unglue you from your computer.
It all happens over the weekend when the markets are closed…
Tim has made thousands in profits from this strategy.