There is probably a certain segment of the investing population that would look askance at me if I mentioned we're seeing "strength in China." They wouldn't believe that is possible. According to the news media they consume, China is "a mess." Perhaps that is true? But we only follow price here at our shop, and price is beginning to tell a different story.

Today's trade idea comes from TWO seemingly unlikely places: China and Internet! (what??????)

And when you see this chart of the Chinese Internet ETF $KWEB, you'll see why:

The next new trade in our Paid-to-Play portfolio is:

SkyKnight Capital Fund disclosed the purchase of approximately $1.6 million worth of shares in the home medical equipment company AdaptHealth Corp $AHCO, as it continues to build a position in the stock.

The fund now owns 8,906,070 shares, which represents a roughly 6.15% ownership stake in the medical devices company.

As technicians, we tell it as it is.

By focusing the vast majority of our research on price action, we're simply following money flow. We hate to sound like a broken clock, but if you're following something other than money flow, it's just noise.

Ignore it.

Money flow is by definition the only driver that impacts markets. That spans from price action, derivatives data, order flow, and, in the case of cryptocurrencies, on-chain.

Apart from that, all else is noise.

In this process, we typically have a rather binary view of markets.

"Above this level, we own it. Below there, we leave it alone."

We constantly say this for a reason.

We're not trying to be obnoxious in repeating itself. We are quite literally adjusting our thoughts based on money flow.

"Strong opinions, weakly held," as they say.

The market correction has extended over the past few weeks and the negative sentiment build-up is definitely not something that will fade away quickly. As more and more sectors move below their support zones, buy ideas are hard to come by. Today we're sharing a short idea from the financial services sector.

We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

Whatever we’re looking for, the market has it.

If we’re searching for large topping patterns and strong downtrends, there’s plenty to go around, especially in the bond and stock markets right now.

Some people love taking the short side, feeding on the doom and gloom narratives accompanying the selling pressure.

But if that’s not your cup of tea, plenty of markets are trending higher. If you’re more interested in assets making new highs and like buying high and selling higher, look no further than the currency market.

When it comes to forex crosses these days, it’s simple.

All we have to do is put the US dollar in the numerator or place the Japanese yen in the denominator, and we get big bases that have either broken out or are on the verge of breaking out.

It’s that easy.

We’ve highlighted the yen in recent posts, so today we’ll switch gears and focus on a couple USD crosses from northern Europe.

Let’s dive in!

Here’s the US dollar/Swedish krona cross:...

Key Takeaway:

• Patient investors will let the bulls prove their case.
• Economic risks on the rise as data disappoints.
• Central bank action adding pressure to market and economy.

From the desk of Steve Strazza @Sstrazza

Welcome to our latest Minor Leaguers report.

We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.

That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

We expanded our universe to include some mid-caps.

To make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.

And it doesn’t have to be a Russell component -- it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.

The same price and liquidity filters are applied. Then, as always, we sort by proximity...

We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio:

We had a resting GTC order filled at our profit target in the Paid-to-Play portfolio today: