Nostalgia is Not Such a Bad Thing

Headed into Netflix earnings tonight, stocks are enjoying a modest relief bounce after yesterday's sharp downside reversal. We will likely be hearing an update from the Pelosi/Mnuchin tag team regarding stimulus deal talks later this afternoon which, of course, is arguably the main focus of the market in the near-term beyond even earnings and the election. 

While we wait on those developments (or lack thereof), some of the China stocks continue to display rare price action, be it JKS (second daily chart, below), which is routinely ripping off 15% intraday upside move on a daily basis like it is the equivalent of waking up and taking a shower. Other China names this week, like KXIN, have swung wildly as well in recent sessions.

This all seems a bit too good to be true. If you have been trading markets for more than a few quarters or even years, then you probably remember some previous hot China stocks like, for example, FUQI or RINO, among many others. There were some of them which were as hot as can be and then one day were halted on suspected accounting fraud and never traded again in America. In other words: Buyer beware, especially if the SEC is asleep at the switch on these names--As we know, China corporate governance is not exactly the gold standard. 

Elsewhere, Albertson's delivered a strong quarter, seen on the first daly chart, below. I love the name long-term and own ACI with VIP Members. They also just bought Kings grocery, a local chain to me, at a very reasonable valuation. Kings has been going downhill for a while now, and you can sense it with low worker morale in their stores. I suspect ACI and its solid CEO will do a good job of extracting value from the once-proud franchise.

Maybe that is just nostalgia. But nostalgia ain't such a bad thing, after all.