China's Politburo turned up the heat Monday on a broad range of tech, consumer, financial and commodities plays with its vow to carry out "more proactive" fiscal policy and loosen monetary policy next year. Some U.S.-traded Chinese stocks flashed clear entry points, including online retailer JD.com (JD), Trip.com (TCOM), hotel operator Atour Lifestyle (ATAT) and EV maker Xpeng (XPEV).
The lists is likely to grow once over-the-counter stocks, which aren't traded off-hours, begin trading, with Tencent (TCEHY) and BYD set to make a run at their 50-day moving averages. Futu Holdings (FUTU), a provider of digital financial services, jumped 11.5%.
↑ XCommodities stocks were broadly high as gold futures traded up 0.7%, silver 2.5%, copper 1.9%. Oil and natural gas were higher too. It's not clear if the overthrow of the Syrian regime is a contributing factor.
Freeport-McMoRan (FCX) climbed 4% early Monday, but the copper play is still likely to open below its 50- and 200-day moving averages. Pan American Silver advanced 3.1%.
JD rose 8.9% to 40.50, putting it on track to open above its 50-day line. TCOM, up 8.4% to 74.88 in premarket trading, is set to vault past a 69.67 buy point, according to a MarketSurge analysis. ATAT is up 6.6% to 28.25, which would flash an early entry on the move past its 50-day average.
Keep in mind that a number of Chinese stocks, including Alibaba (BABA), which had explosive moves after Beijing started uncorking new stimulus measures in September, have given up those gains. BABA rose 6.7%.
That's a reflection of China's difficulty in reviving its economy that continues to suffer a hangover from the bursting of a property bubble. While Beijing is targeting 5% GDP growth next year, China's growth has been overly dependent on manufacturing exports.
That's a big reason why China is perhaps the chief target of President-elect Donald Trump's tariff plans. Trump has already threatened to slap a 10% tariff on all Chinese imports upon taking office, but campaigned on an import tax of as much as 60%.
For today's breakouts to signal a sustained move higher, it will require that Beijing finally gets stimulus right and Trump keep a lid on tariffs.
Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.
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