When to add to my Chinese internet giants?

Going through my charts this weekend, I noticed that the KWEB etf is shaping up nicely on various time frames now. Even better, its the longer time frames that are showing the best opportunity. I am drawn to this because its the long term plays that often give us an opportunity to add to winners and really press for larger gains. At times we get lucky and can stay in something over a year, dropping our taxes to the long term capital gains rate, far less than regular income tax, however we should never make a trading decision to stay in something on that alone. Its just a bonus when it happens!

So let’s re-visit KWEB, but this time use the weekly and monthly charts. Suffice to say, this is one I will look to add to my position, and as always, I will let subscribers know each step as i take it. First, the weekly chart.

Nice chart, just wait until that MACD crosses higher, we could be off to the races, though we must have patience and let it do its thing until then. The gains can come quick once they start, lets be content to know we could be in the driver’s seat on this one. Now, let’s check the monthly chart.

On the monthly, we see the stochastics already well oversold, and possibly getting ready to cross higher and out of the oversold zone. These setups are never guaranteed, just like anything in trading, but our job is to take the trades as they present, with limited, fixed total risk. I have a starter position in KWEB LEAPS that expire in Jan 2023 (70 strike price), that could pay out multiples of my purchase price (check my accounts in the side bar), so this is something I will certainly be looking to add to in the future. I prefer to add into pullbacks, but will even add into strength if the pullbacks dont occur, just with less size. Keep in mind I will keep my overall total risk fixed, so the more I add, the less room I can give it on pullbacks. This is why I prefer to see it make some more gains before I get very aggressive.