Top Advisors Corner

Is China the Best Place to Park Your Money?

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Hello fellow StockCharts users. China is returning to work and the economy slowly getting back to normal. Is China potentially the best place to park your money while the rest of the world still battles with this horrific virus? I thought I would take a look at a few charts highlighting the relative performance of Chinese names against the S&P and the Vanguard Total World Stock Index Fund ETF. Let's get to the charts!

KWEB is an ETF that holds Chinese technology and internet stocks. There is a rangebound setup, with resistance being at $50 and support at around $38. With this recent rally in price, we have broken above the relative performance trendline (red trendline) and moved above the 50-day moving average highlighted in blue. Even though we are still in a rangebound setup, the relative performance is very encouraging.

TAL Education Group (TAL), according to MarketWatch, operates as a holding company, which, through its subsidiaries, engages in the provision of after-school tutoring programs for primary and secondary school students. Its services are delivered through small classes and personalized premium services, such as one-on-one tutoring. TAL is the sixth-largest holding in KWEB with a weight of 4.96%. TAL broke out in late December and has held up terrific relative to the rest of the markets staying above its 40-week moving average. The most important thing to note here is the relative performance to the $SPY & $VTI are hitting new all-time highs.

Tencent Holdings LTD (TCTZF), according to MarketWatch, is an investment company which engages in the provision of value-added services and online advertising services. It operates through the following segments: Value-Added Services, Online Advertising, and Others. The Value-Added Services segment involves online and mobile games. Tencent is also the top holding in KWEB at a weight of 9.88%. Tencent broke out of a downtrend back in January and then pulled back to support at $40. It seems to have successfully bounced off support and is headed back to $54, where it topped out in January. What's impressive, like in TAL, is the relative performance to the $SPY & $VTI both showing signs of strength in the recent months.

Keep an eye on these Chinese stocks in the coming months, as they seem very interesting. If you have any Chinese stocks that I missed, please don't hesitate to share with via email at bozicmarketreport@gmail.com.


- Aleksandar Bozic

Aleksandar Bozic
About the author: is the founder of the Bozic Market Report. He previously worked at ValueTrend Wealth Management as a Technical Analyst Associate. He also founded the Ryerson Society of Technical Analysts and became the first student ambassador for the CMT Association. He now serves as Chapter Assistant for the Toronto wing of the CMT Association. Learn More
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