Chart of the Day - Monday, February 10, 2025

🏆 Today's Chart of the Day was shared by @cycle_strategy.
 

• After carving out a potential bottom last year, China is trying to establish a new uptrend. The China Large Cap ETF ($FXI) is up twice as much as the S&P 500 ($SPY) over the past year, rising +53.1% vs. +22.2%. 
   
• Around this time last year, many called China "uninvestable." While it's become less hated since then, sentiment remains bitter, and positioning is far from crowded. 
   
• @cycle_strategy points out that the Hang Seng Index was in a similar situation at the beginning of Trump's first term in 2017. Analog charts should be taken with a grain of salt, but the similarities are uncanny. 
   

The Takeaway: After establishing a potential bottom last year, China is gaining momentum and outperforming this year. History never repeats exactly, but the Hang Seng was in a similar situation in 2017 before an impressive run.