20.02.25 - Trade of the day: Long China Tech vs. short US Tech

China tech stocks surge significantly, driven by strong earnings results from Alibaba released today. The sector had already been experiencing an upward trend in recent trading sessions and weeks, reflecting growing investor confidence on China’s economy with signs of recovery.

Markets: at time of publishing, US Tech Nasdaq is down more than 1%, China Tech stocks jump with Alibaba (+10%) - US interest rates down, US dollar down, gold unchanged while cryptos lost part of their intraday gains.

My View: Moving markets are challenging, however offer also opportunities.
The timing proved to be quite farovable. The opened and increased short positions, mainly on US Tech stocks, implemented during the last trading sessions are yielding solid returns. At the same time my larger allocation in Chinese stocks, particularly in the tech sector, is also paying off. Today, I have already taken partial profit on equities in both Europe and China’s tech sector, executing this through raised levels in stop orders.

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