Chart of the Day - Tuesday, February 18, 2025

Patrick Dunuwila
March 18, 2025

Chart of the Day


 🏆 Today's Chart of the Day was shared by Aaron Jackson (@RotationReport).
 

  • China is looking much more 'investable' these days after being called the opposite by many pundits last year. The China Tech ETF ($CQQQ) has gained +26% YTD, while its American equivalent, $QQQ, is down -7.2%.
     
  • $CQQQ hasn't even broken out in absolute terms, but it's getting close. Aaron points out it's approaching resistance at $51 for the fourth time. 
     

  • $CQQQ has carved out a potential bottom over the past three years. Investors will find it much harder to ignore China if $CQQQ resolves higher. The largest holdings in $CQQQ are Tencent, Meituan, PDD Holdings, Kuaishou Technology, and Baidu. 

     

The Takeaway: China Tech has notably outperformed US Tech this year. However, $CQQQ hasn't even broken out yet. If this three-year base resolves higher, it will confirm a multi-year bottom in Chinese stocks. 

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