By Sam Gatlin
Founder’s Note: JC Parets here. Analyst Sam Gatlin is another key part of the TrendLabs team.
I like to think of Sam as my protégé. He’s also my go-to technician for details that turn setups into trades.
Sam likes what he calls the “Apple of China.” And – of course – he’s got the data to back him up.
Here’s Sam…
- I’m looking East for leadership.
- The Apple of China is greater than the Apple of the U.S.
- My intermarket analysis suggests this could last for years.
I first heard the name JC Parets while I was in high school, trying to win a trading competition in class.
My teacher told me “to buy stocks that you know” and “to buy stocks with value.”
Nice advice, in theory.
In practice? It was some of the worst counsel I ever received.
I wanted to trade in reality.
So I found JC on X (it was Twitter back then) and then his blog and on Investopedia.
His market commentary was the start of the education I needed.
JC’s charts hooked me. That was my gateway to technical analysis. And I’ve been elevating my game ever since…
I’ve since passed all three levels of the CMT – becoming one of the youngest ever to do it in the U.S.
But I didn’t stop there. I started posting charts on X and interacting with JC.
He must’ve been impressed with my work because he hired me while I was still in college.
JC gave me the tools. The market gives me the signals.
Now it’s time to show you what I see.
Everybody’s Wrong: China’s Apple Is the Real One
People laugh at me when I say this on X.
But it’s true: Price doesn’t lie.
Since Tariff Man’s “Liberation Day” in early April, the scoreboard isn’t even close…
We joke internally about buying more Chinese stocks whenever someone says “tariff.”
And that has undoubtedly been the move lately!
Since Liberation Day, the Apple of the United States has fallen by over 12%. During that same time, the Apple of China rallied over 18%.
That’s a net spread of over 30%!
I don’t think this is just a short-term pop:
The Xiaomi (XIACY)/Apple (AAPL) ratio is in the process of completing a massive accumulation pattern.
This is the type of base that leads to major trend shifts. It’s a forecast for sustained leadership from the numerator.
If this ratio decisively breaks out, I expect this outperformance to last much longer.
I’m not talking about a few months or even a few quarters…
This is likely to be a trend that lasts for years or even decades.
This Is a Regime Shift
Let’s turn to the absolute chart of Xiamoi, which trades over the counter (OTC) in the U.S. under the ticker XIACY:
The $175 billion smartphone manufacturer completed a massive base late last year and soared higher to the first Fibonacci extension level.
Since then, it has been consolidating in a range between the prior cycle’s peak and the 161.8% extension.
I think it’s just a matter of time before the stock makes fresh all-time highs.
This is not just a trade. It’s a regime shift.
Everyone’s still anchored to the old narrative.
“Apple is the king of smartphones…”
“U.S. tech is the only game in town…”
Investors who say this are lazy, and I think they’re wrong.
I’m not looking at where the puck has been.
I’m looking to where the puck is going, and I think it’s going East.
Because the “fake Apple” might just be the real one.
Stay sharp,
Sam Gatlin
Analyst, TrendLabs