Chart of the Day - Thursday, September 26, 2024

🏆 Today's Chart of the Day was shared by Mark Ungewitter (@mark_ungewitter). 
 

• Chinese stocks surged again today after a record-breaking day on Tuesday. The Hang Seng Index is on track for its best week since October 2011, gaining +9.1%. 
   
• Sentiment has completely changed in a matter of days. All year, Investors have called China 'uninvestable.' But suddenly, everyone is coming out of the closet as a China bull—even legendary investors like David Tepper.
   
• Mark reminds us that China has dramatically underperformed the S&P 500 over the past decade. The relative trend remains lower despite this week's rebound. Long-term trends take time to reverse. If a new uptrend is genuinely developing, there will be plenty of time to ride it. 
   

Takeaway: China is on track for its best week in over a decade. Even after this week's rebound, the relative trend remains lower. If a new uptrend is underway, there will be plenty of time to get involved before it has run its course.