HX Trader Position Update

A month ago, we recommended shares in a company that has one of the greatest growth track records in human history.

The shares had just had one of their biggest one-day sell-offs in the company’s history. We felt this presented an opportunity to scoop up a bargain.

Since then - and especially this week - the shares have rallied massively. Now it is time to take profits on the opportunity.

Here is the update…

The company we are talking about is PDD Holdings Inc. (NASDAQ: PDD).

You may not be familiar with the company, but they are the third largest retailer on Earth. In China they operate a platform called Pinduoduo, but here in the United States they operate as Temu. A leading online platform for super cheap goods.

As we have said above the company has had one of the best track records of growth ever. They have gone from $13 billion in sales in 2018 to estimates of OVER $500 billion next year.

The company reported great results back in late August. They did, however, note that the business was slowing down. Considering the superb growth they have seen in recent periods this seemed logical and not a problem.

We saw a record sell-off in an all-time great company and took advantage.

When we see big gaps down in stock prices for companies like this, we know there is a very high probability those gaps get filled and the stock goes higher. We don’t always know when, why or how that will happen. It just most often happens if you pick the right spots.

Well - this week the Chinese government has come out swinging with stimulus to reinvigorate the Chinese economy. That has resulted in a record rally in Chinese stocks.

PDD has rallied right along with the rest of the Chinese market.

This has produced awesome returns on our recommendation, and it is time to take profits.

Both trades are now profitable, and we are going to close them out.