Capitulative? Highest volume day in history for $KWEB … "get me out at any price" often the attitude found near the end of a drawdown. pic.twitter.com/gH4CiO3Qq2
— Chris Verrone (@verrone_chris) July 27, 2021
Today’s Chart of the Day was shared on Twitter by Chris Verrone of Strategas Research (@verrone_chris). It’s a chart of the China Internet ETF, $KWEB, over the past 3.5 years. The top-weighted stocks in this popular ETF include Tencent, Alibaba, Meituan, Pinduoduo, and JD.com. As we highlighted yesterday, Chinese stocks have been getting absolutely whacked lately. At this point, $KWEB is more than 50% off its February highs. The bloodbath continued in today’s session, with $KWEB down as much as 8.4% at one point intraday. To be fair, it pared some of those losses to close down 4.6%. As we know, trying to catch a falling knife is never safe. However, Chris points out that today was the highest volume day in $KWEB’s history. Chirs adds that volume spikes like this one are often indicative of capitulation. Where underwater investors throw in the towel and say “get me out at any price.” Could this be the final puke for $KWEB?
