Trading Strategy – Invesco China Technology ETF

One of the noteworthy developments in recent days has been the move in Chinese equity markets.  Shanghai and Shenzhen tumbled 3.8% and 5.8% respectively after Donald Trump asked the U.S. Trade Representative to identify $200B worth of Chinese products that will be subject to additional tariffs of 10%.  As such, the Invesco China Technology ETF (CQQQ) fell 2.95 percent Tuesday, down 3 percent YTD.  Now the question is whether recent pullback is a pause that refreshes or it’s a beginning of something worse?  Below is an update look at a trade in CQQQ.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red. 

Chart 1.1 – Invesco China Technology ETF (weekly)

Our “U.S. Market Trading Map” painted CQQQ bars in red (sell) – see area ‘A’ in the chart. After a strong run of outperformance since early 2017, CQQQ peaked in late 2017 and printed a bearish series of lower lows and lower highs.  This week’s massive selloff pushed the ETF slightly below the 1-year moving average, the level that offered support since CQQQ broke out in early 2017.  This is a bearish development…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.


This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

Subscribe to CEM News to receive more in-depth research from Capital Essence.

P.S. Take advantage of the 30 days special trial [new member only]. Join a small group of elite traders and receiving these daily trading ideas by click here to subscribe.