China has been performing absolutely terribly this year, especially relative to the US, as the talk of more tariffs sounds more alarms. However, just yesterday we received news of planned trade talks between the two countries, and that possibility was enough to send China shares significantly higher for a one-day move. There could be a larger and significantly more violent snap back for Chinese shares if/when meaningful discussions actually take place, and if/when an amicable resolution is achieved.
Whether you're betting against China, or if you're thinking of making a contrarian play (with broad ETFs or specific ADR shares) yesterday's big move could be a sign of big moves to come. We discussed this topic in more detail in Jeff Miller's weekly report, Stock Exchange: Caught Leaning Into A China Trade? Now What?