What’s the next hot sector?
We haven’t had one for a while…
True penny stocks have been a hot theme lately thanks to Cosmos Holdings Inc. (NASDAQ: COSM) going from around 8 cents to over 80 cents.
Now everyone’s looking for the next one…
But another stock sector is popping off recently.
And it makes me wonder if this could be the next hot sector…
Plus, it’s kicking off with a real catalyst — earnings winners! One of my favorite stock catalysts to trade…
So what’s this sector and which stocks are moving? Read on…
The Theme of Today … And Maybe Tomorrow?
True penny stocks were the theme of the day again yesterday, but another sector could be coming up…
Over the last few days, Chinese stocks are starting to run again…
It started with Bilibili Inc. (NASDAQ: BILI) on Tuesday…
The stock gapped up after the company announced earnings. It had a nice morning spike, then held up along VWAP and closed at or around the highs.
It’s exactly what we want to see in stocks for the potential for more upside. And BILI did continue higher yesterday…
BILI chart: 2-day, 1-minute candle — courtesy of StocksToTrade.com
XPeng Inc. (NYSE: XPEV) is another Chinese stock that was boosted by earnings.
Yesterday in premarket the company announced third-quarter results.
The stock gapped up and broke its premarket high right before the open. The stock was also on Oracle with a signal price of $9.19.
It made a high of $10.83. And Oracle laid out nice support and resistance lines…
XPEV chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
But there were more Chinese stocks running yesterday…
Other EV makers NIO Inc. (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) were also up.
But so were internet companies, Alibaba Group Holding Limited (NYSE: BABA) and Baidu, Inc. (NASDAQ: BIDU).
They’re all moving on news that some major Chinese cities are lifting COVID lockdowns after protests over the weekend.
If headlines continue to indicate a re-opening in China, we could see these stock runs continue. And the sketchy Chinese penny stocks could follow in sympathy.
If they do, we’ll be ready. Watch this video to see how to find hot sector stocks.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade