Let’s look at Huya ($HUYA) as a solid trade into next week. (January 25, 2019)HUYA
Let’s look at Huya ( NYSE: HUYA ). This is a big Chinese gaming stock that absolutely got crushed since June. This thing lost, I thought it even lost more than 70 percent of its market cap; this had been getting absolutely crushed. But then lo and behold on December 24th, I think this was that day, when everything else just absolutely tanked, Huya ( NYSE: HUYA ) had fallen as well but it hit a higher low.
This is the case with a lot of China stocks; Cramer covered some of my stuff on Tuesday, he covered those in the Weekend Update video. But here, this is one that I didn’t get to him but I kind of wish I had because this was a nice big breakout above the 50-day moving average. Now we are getting this little zigzag pattern. And then today, Friday, the stock gapped up and then it just kept going. It gapped up over 2 percent and kept going on really strong volume, twice average volume.
So frankly, this is how I think you can trade this stock: You have to give it some room because you have got to the give the stock room to fail, frankly. But you can buy this stock on Monday. Hopefully, you can get it at a little bit lower price than it is now, maybe it will pull back a bit. But this kind of power move is a move that indicates that retail investors are in it but now institutions are coming in.
A stock that trades almost 5 million shares, that is not Billy-Bob and Jethro buying stock, those are the big investment firms taking stock. Also, there are 10 analysts that covered this stock, that’s like nobody. And so, as the stock rallies in price it is going to attract more intuitional interest and you are going to wind up seeing upgrades, new coverage initiations, stuff like that. I think Huya ( NYSE: HUYA ) can make you some money next week.