The High-Stakes China Bet with Explosive Upside if Fear Unwinds

Why the Most Hated Trade Right Now Could Deliver the Biggest Payout

I’ll be live with Jack Carter at 11:30 AM ET for Market Masters — we’ll cover current trends and trades, actionable opportunities, trading education and more   The Great Yard Sale?   First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter. About 92% of employed Americans are cutting back on spending as the cost-of-living crisis crushes the middle class, but savvy investors can profit from discount retailers, consumer staples, gold and the dark reality of rising consumer debt. Come join me as we dive in and see what’s moving!  Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.    — — —    The High-Stakes China Bet with Explosive Upside if Fear Unwinds   I know what you're thinking. Chinese stocks? Really? With all the tariff chaos, the regulatory crackdowns and the real estate crisis that won't quit? That hesitation is exactly why this might be one of the most asymmetric bets sitting in front of us right now. The Shanghai Composite has been ripping higher, and here's the unusual part — it's oddly underowned by nearly everyone outside Beijing. Investors have been avoiding China because of the property meltdown and heavy-handed regulation, leaving the whole market sitting in a fear-driven vacuum. Buying into Chinese stocks right now is a high-stakes bet, but the payout could be asymmetric if this chaos turns out to be a little bit of noise. And the fear isn't just about the economy — it's the tariffs, the headlines and the political theater. But what if this tariff situation is nothing more than negotiating theater? What if it's a bluff? What if the Supreme Court issues a decision that strikes it down? If that happens, the entire overhang disappears in an instant.  If a deal is cut, all that fear unwinds. We're already seeing what fear looks like in real time — China getting punished on every tariff headline, with stocks like PDD Holdings (PDD) getting hit hard. It's the classic fear trade playing out, and markets often overshoot when emotion takes the wheel. The High-Stakes Setup This is where things get interesting. When positioning is this extreme and sentiment this washed out, it doesn't take much to flip the narrative. And when it flips, it usually flips fast. I've been tracking several setups that take advantage of that potential unwind. The Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB) could make a run toward $65 if fear starts to ease.  On the inverse side, Direxion Daily FTSE China Bear 3X Shares (YANG) is the 3x leveraged bear play. I'd wait for a close above the 61.8% Fibonacci retracement before looking toward a move to $60. Leverage cuts both ways — if China fails, YANG fails fast, but if China catches a bid, the upside can be explosive. The Contrarian Edge China is the most hated major market on the board right now. Underowned, misunderstood and overshadowed by political noise. That's exactly the kind of environment where contrarian setups come alive. If the tariff story softens or disappears, if sentiment shifts even slightly or if positioning simply normalizes, these beaten-down names could move hard and fast.  The crowd is terrified. And when the crowd is this far to one side of the boat, the opportunity is usually on the other. I'm not saying this is a sure thing. I'm saying it's one of the most interesting asymmetric plays out there, especially if the current drama turns out to be temporary. When fear overloads a market, smart money pays attention. Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube! Morning Monster Is Starting NOW! I’m also live at 5 p.m. ET on Tuesdays for “30 Minutes of Awesome” — bring your ticker and I’ll analyze it in real time! And be sure to hit that Subscribe button on my YouTube page! _____________________________________________________   _____________________________________________________ 1 Strange Trade Would Have Doubled A Stake 31 Times in 2025 Alone…  And according to two former hedge fund traders, this special option could present more opportunities in 2026.   Would you like to get all the details?   Yes! Show Me This Special Trade We develop strategies to the best of our ability, but we cannot guarantee a future return. There is always a risk of loss when trading. Past performance is not indicative of future results. The results shown are from a 237-trade backtest from 1/1/20 - 1/1/26. The result was a 70% win rate, 40% average return (winners and losers), with a 7-day hold time. _____________________________________________________ Today’s Daily Chart Setup: Lennar (LEN)     This idea came directly from my Daily Chart Setup that automatically signals potential plays.    • LEN is a new potential entry. Target: 138.34 Stop below: 101.12 • LEN has a historical win rate of 92.31% • LEN has a profit factor of 3.687 • LEN trades last 134 trading days on average over 26 trades since 1971. See the secret behind these signals here!   This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Always remember that past performance is not indicative of future results. How the Daily Chart Setup Works Here’s a more detailed description of how the pattern triggers:         1. The price breaks upward through the orange Market         Roadmap line.          2. Then the price goes up and down while staying above the         line. Eventually, it comes down to touch the line again — this         could take days, weeks or even months.          3. Once it touches the line and starts moving back up, that         signals an entry.  I use Fibonacci levels for for profit targets and stop losses, and these two tools combined have helped me achieve a 77% win rate over the past six-plus years! You can grab my Market Roadmap Indicator here for just $5 — less than a cup of coffee at most places! Jeffry Turnmire Jeffry Turnmire Trading I host my “Morning Monster” livestream at 9:15 a.m. ET each weekday on YouTube, and then “30 Minutes of Awesome” at 5 p.m. ET each Tuesday! Please check out my channel and hit that Subscribe button! I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader. I've been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it's the Eagle Scout in me.  *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

I’ll be live with Jack Carter at 11:30 AM ET for Market Masters — we’ll cover current trends and trades, actionable opportunities, trading education and more   The Great Yard Sale?   First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.   About 92% of employed Americans are cutting back on spending as the cost-of-living crisis crushes the middle class, but savvy investors can profit from discount retailers, consumer staples, gold and the dark reality of rising consumer debt.   Come join me as we dive in and see what’s moving!    Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.    — — —    The High-Stakes China Bet with Explosive Upside if Fear Unwinds   I know what you're thinking. Chinese stocks? Really? With all the tariff chaos, the regulatory crackdowns and the real estate crisis that won't quit?   That hesitation is exactly why this might be one of the most asymmetric bets sitting in front of us right now.   The Shanghai Composite has been ripping higher, and here's the unusual part — it's oddly underowned by nearly everyone outside Beijing. Investors have been avoiding China because of the property meltdown and heavy-handed regulation, leaving the whole market sitting in a fear-driven vacuum.   Buying into Chinese stocks right now is a high-stakes bet, but the payout could be asymmetric if this chaos turns out to be a little bit of noise. And the fear isn't just about the economy — it's the tariffs, the headlines and the political theater.   But what if this tariff situation is nothing more than negotiating theater? What if it's a bluff? What if the Supreme Court issues a decision that strikes it down? If that happens, the entire overhang disappears in an instant.    If a deal is cut, all that fear unwinds.   We're already seeing what fear looks like in real time — China getting punished on every tariff headline, with stocks like PDD Holdings (PDD) getting hit hard. It's the classic fear trade playing out, and markets often overshoot when emotion takes the wheel. The High-Stakes Setup   This is where things get interesting. When positioning is this extreme and sentiment this washed out, it doesn't take much to flip the narrative. And when it flips, it usually flips fast.   I've been tracking several setups that take advantage of that potential unwind. The Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB) could make a run toward $65 if fear starts to ease.    On the inverse side, Direxion Daily FTSE China Bear 3X Shares (YANG) is the 3x leveraged bear play. I'd wait for a close above the 61.8% Fibonacci retracement before looking toward a move to $60. Leverage cuts both ways — if China fails, YANG fails fast, but if China catches a bid, the upside can be explosive.   The Contrarian Edge   China is the most hated major market on the board right now. Underowned, misunderstood and overshadowed by political noise. That's exactly the kind of environment where contrarian setups come alive.   If the tariff story softens or disappears, if sentiment shifts even slightly or if positioning simply normalizes, these beaten-down names could move hard and fast.    The crowd is terrified. And when the crowd is this far to one side of the boat, the opportunity is usually on the other.   I'm not saying this is a sure thing. I'm saying it's one of the most interesting asymmetric plays out there, especially if the current drama turns out to be temporary. When fear overloads a market, smart money pays attention.   Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube! Morning Monster Is Starting NOW! I’m also live at 5 p.m. ET on Tuesdays for “30 Minutes of Awesome” — bring your ticker and I’ll analyze it in real time!   And be sure to hit that Subscribe button on my YouTube page! _____________________________________________________   _____________________________________________________ 1 Strange Trade Would Have Doubled A Stake 31 Times in 2025 Alone…   And according to two former hedge fund traders, this special option could present more opportunities in 2026.   Would you like to get all the details?   Yes! Show Me This Special Trade We develop strategies to the best of our ability, but we cannot guarantee a future return. There is always a risk of loss when trading. Past performance is not indicative of future results. The results shown are from a 237-trade backtest from 1/1/20 - 1/1/26. The result was a 70% win rate, 40% average return (winners and losers), with a 7-day hold time. _____________________________________________________ Today’s Daily Chart Setup: Lennar (LEN)     This idea came directly from my Daily Chart Setup that automatically signals potential plays.    LEN is a new potential entry. Target: 138.34 Stop below: 101.12 LEN has a historical win rate of 92.31% LEN has a profit factor of 3.687 LEN trades last 134 trading days on average over 26 trades since 1971. See the secret behind these signals here!     This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Always remember that past performance is not indicative of future results.   How the Daily Chart Setup Works   Here’s a more detailed description of how the pattern triggers:           1. The price breaks upward through the orange Market         Roadmap line.            2. Then the price goes up and down while staying above the         line. Eventually, it comes down to touch the line again — this         could take days, weeks or even months.            3. Once it touches the line and starts moving back up, that         signals an entry.    I use Fibonacci levels for for profit targets and stop losses, and these two tools combined have helped me achieve a 77% win rate over the past six-plus years!   You can grab my Market Roadmap Indicator here for just $5 — less than a cup of coffee at most places! Jeffry Turnmire Jeffry Turnmire Trading   I host my “Morning Monster” livestream at 9:15 a.m. ET each weekday on YouTube, and then “30 Minutes of Awesome” at 5 p.m. ET each Tuesday!   Please check out my channel and hit that Subscribe button!   I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.   I've been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it's the Eagle Scout in me.    *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Jeffry Turnmire Trading provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Jeffry Turnmire Trading are for your informational purposes only. Neither Jeffry Turnmire Trading nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Jeffry Turnmire Trading is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to ahmedwithnour@gmail.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Jeffry Turnmire Trading provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Jeffry Turnmire Trading are for your informational purposes only. Neither Jeffry Turnmire Trading nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Jeffry Turnmire Trading is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to ahmedwithnour@gmail.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub