Trading Strategy – Invesco China Technology ETF

Chinese equity market was in turmoil in recent weeks amid ongoing concerns of an all-out trade war with US.  Accusing the U.S. of launching the largest trade war in economic history to date China has implemented retaliatory tariffs on 545 items worth $34B in response to the Trump administration on July 6 imposed 25 percent duties on $34 billion in Chinese imports.  The Invesco China Technology ETF (CQQQ) plunged 7.7 percent YTD.  Now the question is whether recent selloff 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 late 2015, CQQQ peaked in late 2017 and rolled over.  The mid-June selloff pushed the ETF below the 1-year moving average, the…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.


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