14Sep1:27 pmEST

An Old Bucket Shop Play

As far as issues which trade on a major exchange (in this case, the Nasdaq), it does not get too much more speculative than a very small cap China play in the electric car sector. 

And, yet, if Kandi Technologies Group, Inc., based Jinhua, China, cannot figure out a way to turn its beaten-down chart around now, I suspect it may never find a way. 

Specifically, KNDI is now caught up in a both a China high beta bull run (see: BABA BIDU SINA WB, etc.), as well as a run on electrical cars (TSLA) and related plays like lithium (LIT ALB FMC SQM). 

Thus, with KNDI's recent pop above its 200-day moving average (yellow line on daily timeframe, zoomed-out below), bulls have some tangle technical development with which to work going forward.

And despite today's sharp giveback, if KNDI can now hold over $4.26 as the 200-day smooth out, eventually that reference point will turn higher and give bulls further ammunition for a long-term turnaround in favor of bulls. 

Clearly, this type of speculative play is well outside the wheelhouse for many traders, which is perfectly fine. There is never any need to force yourself to dabble in stocks when you are not comfortable doing so, since there is an abundance of stocks in general from which to choose. 

But for those willing to stalk an old-school bucket shop type of play, KNDI sure is at the cross-section of some hot action these days. 

More on the market in my usual Midday Video for Members

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