China To The Rescue (Again)?

Good Tuesday Morning, MPTraders!  February 6, 2024-- Pre-Market Update: China to the rescue (again)? LLY and PLTR earnings beats... Today's session is all about 10-year YIELD and speeches from Fed Heads Mester, Kashkari, and Collins who just might weigh in on the fallout from Chair Powell's 60 Minutes interview when The Street "all of a sudden" realized the first rate cut could be much later in 2024 than anyone expects... 

The China equity markets had huge gains today, with the Shanghai Composite up 3.2% and the Shenzhen Composite climbing a historic 6.2%. Why? For two reasons mainly: 1) The Chinese markets were down 20% for 2024, and as such, were extremely oversold and overdue for a bounce... and 2) China President Xi is rumored to be scheduled to meet Chinese market regulators very soon, leading many investors to anticipate a sustainable upmove (aka market manipulation). My attached 4-Hour Chart of BABA shows the stock has gapped up 2.8% in US pre-market trading, but more significantly, all of the price action carved out during the past 3 months has taken the shape of a near-term bottom formation that is exerting upward pressure on key resistance at 77.50-78.50 that is (when?) hurdled will point to 83.50 and then 87-88. Only a close beneath 74.50 will throw cold water on this budding upmove. 

For anyone who needs more excitement than the US markets can provide, by all means, consider BABA or BIDU et al to catch President Xi's buy signal.

Next: PLTR and LLY...and then ES and TLT...