Trend Signal Now: Rotate to Red

Tuesday, July 15, 2025

Welcome to The Strazza Letter, a free note with market insights from me, All Star Charts Chief Market Strategist Steve Strazza.

The dollar is undergoing a counter trend rally.

And when it comes to international equities, some are coming under pressure… but others look like they are just getting started.

If you believe a falling dollar is a tailwind for global equities, and the dollar is in a primary downtrend— then any fits of dollar strength should bring buying opportunities.

That's how I'm thinking right now.

However, I still want to be selective and lean into short-term relative strength and momentum.

In other words, I want to buy the ones that are making new highs even despite the rising dollar.

Better yet, I want to buy the ones completing fresh trend reversals in the face of these FX headwinds.

That brings us to China. Even amid non-stop trade war headlines, the Emerging Market behemoth is checking all our technical boxes.

And how good is this textbook trend reversal in Chinese Tech $KWEB:

This base hasn't even gone yet. I think you have to be all in on China when it does.

And we're so close. We're above VWAPs and the initial breakout level, but the ultimate confirmation comes at the pivot highs around 39.

As it relates to the primary trend, we've already had a historic initiation thrust.

In the time since, the leaders have become some of the top stocks in the global equities landscape- that's confirmation.

I'm talking about BYDDF, XIACY, TME, NTES, etc.

Here's NTES. It's as actionable as anything in China right now, just breaking out to all-time highs.

I like it above 134.

I think it's finally time for the broader Chinese market to join the party.

I continue to believe that anchor positions in the Mag 7 of China is the right way to build exposure to this region of the world.

I also think it's important to pick our spots selectively.

I want to buy the fresh primary trend reversals in the best Chinese companies.

Here's one I like right now.

BABA above 120 gets you the ideal entry on the Amazon of China. What more could you want?

But I also want to play the rally phases with leveraged vehicles. And I want some action in China's hottest stocks, too.

Breakout Multiplier is perfect for this. We bought some China calls last week and sold a quick triple on them today.

That was Kingsoft $KC. The stock is up about 40% since we got in. Our options are up a lot more.

It's a cycle-leader, so we expect more stocks to follow suit. And we're so ready for it.

We are putting more long ideas out this week- and we're making the bet they are going to follow KCs path higher.

The Case For Crypto To $10 Trillion

Risk assets are booming and crypto is at the forefront. Lucky for me, I got a guy for this.

Our Head of Crypto, Louis Sykes, keeps me on the right side of the crypto market. He's been doing it for years.

He can do the same for you. Join Louis at 4PM ET tomorrow and he's going to tell you everything you need to know. JC will be there too. Click here to sign up.

Steve Strazza | Chief Market Strategist, All Star Charts

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