No Crisis Yet… (Bullish Materials)

Stimulus trade time...

Action to Take: Stay positive.

Is the third time the charm for Chinese stimulus?

After two false starts this year—and with intriguing timing, as they launch an antitrust probe into Nvidia (NVDA), sending markets lower—Beijing has pledged a "moderately loose" policy and promised to "forcefully lift consumption" - their most direct language on stimulus since 2011. While earlier efforts faltered as China prioritized stability over bold stimulus, growing concerns about youth unemployment and a faltering property market raise the stakes for a more decisive approach.

If you’re willing to speculate, I will return to the stock we mentioned in July - Baidu (BIDU). I will point out that BIDU shares have SURGED over two-week time frames when the stimulus reenters the picture.

The September stimulus hype produced about a $19 move at that time.

Late December 2022-early January 2023 produced a similar move that also took BIDU on a wild ride higher.

Keep an eye on the Energy Select Sector Fund (XLE) for e…