Move only if there is a real advantage to be gained - Sun Tzu
Updated
Read article here .
If you watch boxing matches, you would notice that the boxers spend quite a bit of time dancing around their opponent, making them strike first, exhaust their energy , get familiar with their strategies,etc. The real punch comes when there is a real advantage to it else it will land itself into the air, wasting energy and revealing oneself.
At least, this is how I see the drama being played here between China and US. US, under the leadership of President Trump is blatantly forcing China out of the market by imposing trade tariffs, forcing Huawei out of the market, amongst many others.
China, know its position and does not retaliate by brute force but take a step back and learn and "suffer in silence" and pay the price. When time is ripe, they strike and it is a mighty blow that the opponent is likely to knock out or unable to retaliate as strongly as before. Such is the move China made on HK after decades of letting HK take care of its domestic affairs. The riots have went from bad to worse and it is clear to everyone that under the leadership of Carrie Lam and her team, it is near impossible to contain it.
Now that President Trump has made TSMC to stop supplying chips to Huawei, thinking it will cripple the latter's production. Maybe for a short period of time but Huawei under the leadership of Ren is a warrior, a fighter that never gives up easily.
It remains to be seen in years to come that China will have its own chips manufacturing facilities , not only to supply domestically but once again , dominate the world scene.
If you watch boxing matches, you would notice that the boxers spend quite a bit of time dancing around their opponent, making them strike first, exhaust their energy , get familiar with their strategies,etc. The real punch comes when there is a real advantage to it else it will land itself into the air, wasting energy and revealing oneself.
At least, this is how I see the drama being played here between China and US. US, under the leadership of President Trump is blatantly forcing China out of the market by imposing trade tariffs, forcing Huawei out of the market, amongst many others.
China, know its position and does not retaliate by brute force but take a step back and learn and "suffer in silence" and pay the price. When time is ripe, they strike and it is a mighty blow that the opponent is likely to knock out or unable to retaliate as strongly as before. Such is the move China made on HK after decades of letting HK take care of its domestic affairs. The riots have went from bad to worse and it is clear to everyone that under the leadership of Carrie Lam and her team, it is near impossible to contain it.
Now that President Trump has made TSMC to stop supplying chips to Huawei, thinking it will cripple the latter's production. Maybe for a short period of time but Huawei under the leadership of Ren is a warrior, a fighter that never gives up easily.
It remains to be seen in years to come that China will have its own chips manufacturing facilities , not only to supply domestically but once again , dominate the world scene.
Note
Praise the Lord. another strong rally stockNote
126% returns if you had longed this stock at 17.90. Congratulations !!!It is too high to chase this stock now, let's wait for the pullback to around 33-36 dollars before entering long.
Note
it is down about 14% now as I am tying this comment, so wait for itNote
Interestingly, at the end of day, this stock has fallen about 24% in one day and yet, its maiden debut in the Shanghai stock market has shoot up more than 200% on the same day !cnbc.com/2020/07/16/smic-chinas-biggest-chipmaker-surges-in-shanghai-listing.html
Note
24.98 has proven to be a strong supportNote
added some todayNote
this stock has dropped more than 50% from its peak at 44 and I think that it will play a central role in the years to come , especially in the 5G space for China. Due to the constant suppression by US on Huawei and many countries are in some way, afraid to offend the big brother, they have no choice but to play puppet along the way......Huawei will then have to switch more of its supplies to local chips manufacturer and while SMIC lags behind the technology, I believe the Chinese government will pump money in this sector. They are currently the leader in 5G technology and it makes business sense to invest in a sector that can propel China forward into the international markets and especially not over reliant on US. Regardless of who wins the election, China is well aware the tension will at most be reduced temporarily before it flare up again. That is why the focus from schools to private companies , 5G technology, cloud computing, Live Commerce, IOT, AI, Big Data will set the trend moving forward for China.
Note
We took another long position and believes it will soon close the gap from 21.45 to 22.36 before moving higher up.Note
Praise the Lord. It is up 12% today !!!Note
added some today!Note
added some yesterday, it is now above the resistance at 24.98
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.