Chinese stocks soared on Tuesday following an unexpected and substantial monetary stimulus from the People’s Bank of China (PBoC).
The central bank announced cuts to the reserve requirement ratio (RRR) for banks and the seven-day repo rate, just a day after lowering the 14-day reverse repo rate.
The central bank announced cuts to the reserve requirement ratio (RRR) for banks and the seven-day repo rate, just a day after lowering the 14-day reverse repo rate.
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00:00Even random news coming from China here a be because you got these China stocks all popping up and it looks like maybe finally
00:08The Chinese government's gonna try to help their stocks
00:12Yeah, I mean, I don't know if I would call it random just because we've known that the Chinese economy has had some of these
00:18issues and you know
00:21Certainly in the property in the real estate sector and you know, what do central banks do when the economy is struggling?
00:27Typically, they try to you know, cut rates and and offer some sort of easy monetary policy
00:33So the PBO see the Public Bank of China cut a key interest rate
00:39And plans to reduce the amount of money banks need to hold in reserve in order to boost lending
00:45and then all alongside a
00:47Package of measures to shore up the property sector
00:51So that all these announcements have resulted in Chinese stocks just absolutely ripping overnight
00:56It doesn't matter whether you're looking at the Chinese auto companies whether you're looking at, you know
01:00Your Alibaba's your JD's or even some American stocks that have exposure exposure to China. So if you're long the China trade
01:09You know, you woke up this morning and your portfolio was very very green
01:13We're a little bit long to China trade I thought yeah work the Baba the Bobster a be there to where'd you buy the Bobster
01:21So I bought it a few different times
01:24My price my total, you know average cost is probably around like $75. I want to say it's nice
01:30I'm looking good on it right now. But the thing is is that like
01:33$95 like I don't it's still pretty much just as cheap as when I bought it at so when you look at the chart
01:40You know, it doesn't look like we've made that much progress even though we've gone from you know, 60 a low of like what $67 up to 95
01:48So that's a pretty good move there. But if you zoom out and you look at the long-term Baba still really hasn't gone anywhere
01:55That's a pretty good average price
01:57That's better than probably 99% of the investors out there at the average price. I know 81. My average is 81
02:05So and I've been up down and all around in this thing
02:07I was at one point time I was up 10 bucks and then I was down 10 bucks now back up 13 bucks and like
02:13You know why you probably should just take the money and run. I say this on the China stocks
02:17I said it when I was up 10 and I didn't do it and I'm said my long-term portfolio and I'm trying to say
02:21Oh, well, eventually, you know China's gonna get behind their stock. So it's a good headline
02:26It's a good headline if the government's gonna start supporting the stocks a little bit more
02:30It's a good headline if the government's gonna start supporting the stocks a little bit more here
02:35But we've just seen every time these things seem to rally and you think this is the time
02:40It's the time to sell. So I don't know Joel tell us the technicals. We're gonna
02:45What man I was thinking I mean the only way to really put the hexamona on this stock is if I jumped into it
02:55I don't think there's a single stock. We're all three
02:59I'm sure I mean some of them. Is there one? I haven't I've overlapped in Joel on a couple
03:04I got for sure. I mean it was like Intel. Did you ever buy Intel by AB? I don't know
03:11I don't think so. Oh, you know, I
03:13Interrupted Joel Joel. Give us I just want to say look at this chart. Okay the monthly and I made it bigger, right?
03:20And what do you what do you see here for the first time?
03:25that maybe I'm going back all the way to
03:292016 here. What do you what are you seeing for the first time?
03:34higher high
03:36I'm looking more like to support, you know, like this. Are you looking at the one of the right at the monthly?
03:43I'm just looking at this huge stock
03:48Under 80 dot look at this these monthly lows here
03:52Buyers you you're founding buyers work. This is how Institute how stocks move
03:58Institutions they can pick a price. Okay, and then they say I want as much as I could get it
04:03You know, finally after all this mishmash they decided they wanted to be in at 70
04:08All right
04:08and they tried that for a couple months right and
04:12It got away from them a little bit and then they started up their price so that that 70 was great support
04:18They bumped it up to like the higher 70s, right and now you're busted above 80
04:24So it's like if this and now you're 15 bucks away from 80
04:28I don't know if anyone's gonna be chasing it here
04:31But I don't see a period of as many monthly lows in the same area
04:36Really at any point here you only had three here. You had three here
04:41You had four you're talking, you know, at least six seven monthly lows like in the same area
04:46So, oh, I like I like it. I love the chart you get over a hundred you clear a hundred you said
04:53You know a bit at a hundred the most important things for this is like to establish a bidder
04:58Underneath the market and continue to move higher on a shorter term basis
05:03If you're looking for a short-term target, which I know you guys aren't that's 95 40
05:09Really on the monthlies. I mean you got to be thinking about triple digits right now if the momentum continues here in Babel
05:16You