I used to watch Jim Cramer with my father when I was in high school. He knew I had an interest in the market so gave me a bit of money to experiment with.
I took one of Jim’s calls and bought Build Your Dreams. Part of his bullish thesis was that Buffett was in. This was almost 20-years ago. I paid the $50 international fee and got long.
They call it BYD Co. now. But, it’s the Tesla of China. These guys have been making EVs and batteries longer than anyone. They are an industry leader, and no one ever talks about them.
Mobility is a monster trend and it is just picking up steam.
China is also a monster trend right now. I think it’s the fattest pitch in the market. It’s the kind of trade setup we wait years for.
And BYDDF is one of the secular leaders in the region.
Much unlike Alibaba, Tencent, and Baidu – the other mega-tech bellwethers – BYD Co is breaking out to new all-time highs.
The bottom line is it is one of the best-looking charts in China right now.. It is one of the preferred vehicles.
I’m so long this breakout and I think it is just getting started.
I’m long against 43 with a target of 80. The bull market in China is just getting started so I’m already planning on at least two price targets being hit by this outperformer.
Unfortunately, BYDDF is an OTC stock and therefore does not trade options. It’s a bummer because I would love some leverage on a chart setup like this.
But it is okay. So many other Chinese equity vehicles have liquid options markets.
And boy have we been using them to our advantage in our Breakout Multiplier System.
We have put eight bullish China trades on via call options and seven of them have already doubled. Every time this happens, we take profits and redeploy them into fresh setups.
And when an area or theme of the market keeps rewarding us, we keep going back to it. That’s been the playbook with China so far this year. These trades keep working, so we keep putting more on.
We’re getting together at 4ET today to talk about our next moves. Make sure to join us.
