Larry Berman CFA, CMT, CTA BMO CHINA EQUITY INDEX ETF ZCH-T BUY ON WEAKNESS Sep 13, 2021

Risks include geopolitical risk in China.
Broad exposure to China risky but carries opportunity.
Believes a good way to play a China re-opening.

He bought it at the bottom. Per his normal strategy, he will sell at the top of its trading range. China was feared/disliked as an investment, which became a traded trade, and that's when he bought. Inevitably, sentiment reverses.

He's long-term on this ETF. There is defined support at $14, so if you buy at $14, you're okay. But be patient. If it breaks below that support, he will get it.

Everybody hated China because of real estate problems. Chinese government tends to step in and fix problems, and that's what they've been doing. He tried to buy off the floor, resistance around $17. Lots of faith that it'll get to at least that level, and maybe more.

(Note the short timeframe.) He's being patient, but exercising discipline. If it doesn't hold above where he wants, he'll be out. Chinese tech sector is way cheaper than the American side. Only a 2% position for him, waiting to see what happens.

International markets have done extremely well on a relative basis. The Chinese market had been quite depressed for quite some time, now finally started to break out. Very strong in last month or so. This ETF ranks highly in his scoring, looks amazing on the breakout. Capital is moving into Europe and China. 

What interests him is that despite all the tariff talk, this ETF is doing incredibly well. Intriguing that Trump is issuing all these threats, yet this ETF is breaking out.