Chinese tech stocks were in a world of pain on Monday, October 24th.
Smart electric car maker, NIO, saw its stock price dive below $10. It was down 18.6% as I was writing this that morning.
Alibaba was down 16.69%. It was plumbing its 6.5-year lows.
Tencent was down 15.11%.
And it was all thanks to President Xi Jinping’s move to consolidate power after he was confirmed for a third term as leader of the world’s second-largest economy.
He filled all top positions with loyalists. Pro-market reformers had lost hope.
Also losing hope were Twitter employees. Elon Musk followed his typical MO over that weekend and let the world know of his plans to cut two-thirds of the company’s workforce once he is in control. Investors didn’t like that news and the stock dropped sharply on Friday. In fact, it gapped right out of its volume profile. Then, gapped back up… but only a little.
And SPY was feeling rejected on this particular morning as well.
It kept trying to break out into that lower volume profile node and failing.
This showed a pivotal moment in volume profile – one we see rarely. This, and all the other individual stock movements we were watching, to the downside and upside, opens up trade opportunities. And now you can watch everything that happened during my Pump Up the Close show on Monday the 24th.
Click below to watch the show replay now.
October 24 2022