Alibaba Inc. (BABA) – bought @210, it went up to $320 in 16 weeks = 52.4% return

We recommended the stock back in June, 2020 as a great long-term growth play, and as one of our favorite picks in the Technology sector and in the underlying Internet-Commerce industry. We noted that the price was making a very powerful attempt to break the strong resistance around the $210 mark and that if the price manages to break above that level on a higher than average volume then that would serve as a great buying opportunity for our followers. We recommended for our clients to wait for the price to start moving up from above the $210 resistance before committing fully to the stock and opening their long positions. The anticipated price development to the upside occurred shortly thereafter and the stock moved 52.4% higher in 16 weeks. The stock is part of the VWO, which tracks a market-cap-weighted index of emerging-market stocks, excluding South Korea. VWO is one of the earlier ETFs to launch in this space. In 2013 it switched to a FTSE index which does not count South Korea as an emerging market, putting it in direct competition with Schwab’s SCHE rather than iShares’ EEM. In November 2015 the fund initiated another change, this time to include both small-cap stocks and China A-shares. It eased into this change with a dynamic transitional index, completing the transition in September 2016. Since VWO has no exposure to South Korea, it has more space for China, Brazil, India and the rest of the emerging nations compared with our MSCI benchmark. Through our correlation-confirmation approach we compared VWO’s price performance to the SPY SPDR S&P 500 ETF Trust, and used the strong and positive 10-year correlation of 74% between the two indices in order to validate our market recommendations.


Add a comment