Hey everyone, Barrie Einarson here, bringing you today’s edition of “What Makes This Trade Great.” Let’s jump right in with a spotlight on ATGL, a Chinese stock that’s really stood out in today’s market action.

If you’ve been keeping an eye on the markets today, you’ve probably noticed a ton of movement in China stocks. Many of them were on fire, showing strong gains throughout the day. But with so many options, it can be tough to know which one to focus on. That’s where ATGL came into play for me today. Here’s why it made my radar.

Tracking the China Market with KWEB

When it comes to tracking China stocks, I often use the KWEB index. It gives me a good pulse on how these stocks are performing overall. In the pre-market, KWEB was up about 5-6%, showing some real strength. But as the day went on, something interesting happened: KWEB started to lose its momentum. It began falling and couldn’t hold onto those early gains.

Why ATGL Stood Out

While KWEB was sliding, ATGL wasn’t following the same pattern. That’s the key! Even when KWEB started to give up its gains, ATGL was holding strong. It wasn’t falling off a cliff like some of the other China stocks.

This kind of relative strength is exactly what I look for in a stock. When the broader market or sector is weakening, but a particular stock is maintaining or building on its gains, it’s often a sign that the stock has underlying strength. In the case of ATGL, I noticed it was holding its levels, and that’s what kept me glued to this trade.

The Six-Dollar Break

In the trading room today, I was fixated on ATGL breaking the $6 mark. It was a key level for me, and when it finally broke through in a big way, I took the opportunity to jump in. I’ll admit, I hesitated a bit earlier in the session, trying to decide which China stock to focus on, but I’m glad I stayed with ATGL. The stock held its ground and gave me the signal I was waiting for with that $6 break.

Lessons from Today’s Trade

Today’s session was a great reminder of the importance of being patient and sticking to your criteria. There were plenty of China stocks showing early promise, but not all of them could hold onto those gains. ATGL stood out because it showed strength where others faltered, and that’s what made this trade great.

If you’re looking for opportunities in the market, keep an eye on the relative strength of individual stocks compared to their sector or broader market index. It can often lead you to the best trades of the day.

Until next time, happy trading!