JD.com (JD): Should You be Shorting This Stock?

Table of Contents


All articles are for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade or investments.


All articles are for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade or investments.

Table of Contents

This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

China has opened its borders for almost half a year now.

While the reopening effect has a positive impact on China and the world, not all stocks are buoyed by its reopening.

Let’s find out if this Chinese stock that’s listed on the US stock market, JD.com, is worth a position trade.


Brief History of JD.com

JD Logo

Source: global.jd.com

Founded in 2006, JD.com was known as 360buy Jingdong before changing its name in 2014.

JD.com has morphed from an online marketplace into a logistics, real estate, and digital solutions company.

This sounds great!

Is its financials healthy?

Let’s check it out.


Business Model and Financials

Income Statement of JD.com

Source: tradingview.com

To know if JD.com is healthy financially, let’s have a look at its total revenue (in blue) and net income (in orange).

At a glance, you can tell that its total revenue has been growing every year.

This is a positive sign as it shows growth.

However, growth isn’t everything.

A company has to be profitable to remain in business for the mid to long term.

JD.com’s net income has been inconsistent – rising in 2017, and dropping drastically in 2018, rising again in 2019 and 2020, before taking a hit in 2021, and rising again in 2022.

Such inconsistency isn’t ideal, and it shows weakness.

What does the market think of this weakness?

The answer lies in looking at its price chart.


Technical Analysis on JD.com (NASDAQ: JD)

Chart of JD.com

Looking at the price chart of JD.com, you can tell that it’s in a clear downtrend.

This can be inferred from the number of red vs blue (solid and outlined) candles.

Without the need of any other technical drawings and tools, you can trade off this chart.

Why is it so?

The 2 main indicators on the chart have been carefully formulated, tried and tested. They are the red/green arrow and Trend Impulse Factor indicator.

Since this stock is in a downtrend, you’ll want to look for shorting opportunities.

To know if the time for shorting is ripe, you’ll want to see a red arrow appear above its latest candle, and the bar of its Trend Impulse Factor indicator dark green in color.

On the chart of JD.com, you can see a red arrow above its latest candle.

However, the bar of its Trend Impulse Factor isn’t dark green yet.

This means that although its share price has been falling, it’s not ripe for a shorting opportunity just yet.



Source: pexels.com

The reopening of China hasn’t greatly benefitted JD.com as of yet. Will it stand to benefit in time to come?

Looking at its financials and price chart, the market doesn’t seem that interested in its shares.

And the time to short its shares isn’t here yet as the 2 main indicators aren’t out simultaneously. Give it some time and an opportunity could come.

Both the arrow and Trend Impulse Factor indicator have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won’t have to feel in the dark and make wild guesses.


If you’re struggling to make money from the market, just do this ONE thing in 2023:

If you’re like most people, you probably think that building a profitable side income stream from the stock market is something that is extremely difficult to achieve, and time-consuming as well.

And you probably know that one friend or relative who has lost a lot of hard-earned money to the market despite being ‘experienced’.

And especially since 2022 was a time when we saw many people in the red, bag-holding 20-80% losses…

It’s understandable to see why most people have such a grudge towards the idea of profiting from the market.

But what if I told you that amongst the many skills required to be profitable in trading…

There is one simple skill that will never make you feel that making money in the stock market is difficult ever again?

A skill that, if mastered, can dramatically increase your chances of success in the stock market.

I’m talking about the skill of identifying the right strong stocks.

If you have heard of this before but still do not have it figured out yet, let today be the day you get it right.

You see, the #1 problem with most ‘experienced’ traders who just can’t seem to make money consistently from the market despite having consumed tons of learning resources & materials is not because there is a problem with their strategies.

It’s because unbeknownst to them, they are constantly buying the WRONG stocks.

Stocks that have very bad set-ups, price movement, and in general just a low probability of moving in the direction you wish for.

In fact, this process of picking the right stocks is a crucial step that most people don’t even think about.

Ask yourself this, what is your current process for knowing what stocks to buy?

Companies that you like such as TSLA, META, AAPL etc..?

Stocks that your friends tell you to buy?

Stocks that you read about in financial news, blogs or Youtube videos?

Or even stocks that you spend hours reading up their financial reports and doing fundamental analysis?

If you have done any one of the above, you are making a dangerous mistake and that has to change.

Knowing how to pick strong stocks with the highest profit potential using a proper proven strategy is half the battle won.

It instantly eliminates any potential ‘bad characteristics’ of the stock and significantly increases your chances of being right in the trade.

Once you know how to pick strong, potential stocks, whatever comes after (knowing when to buy or sell) becomes a breeze and you can start expecting to see real, consistent results.

That’s how exactly I was able to still execute 20-40% and higher trades last year when the entire market was down.

So if you think profitable trading is difficult, think again.

I’ve trained thousands of students who started off with complete 0 experience and whose portfolio results are now lightyears ahead of their peers who started learning years before them.

That’s the power of mastering this very simple skill of identifying the right strong stocks.

It literally gives you the weapon to be able to profit in all sorts of market conditions, because opportunities are ALWAYS in the market. It’s all about knowing how to find them!

I hope you’ve learnt this very important lesson today, but more importantly, take action in pursuing the mastery of this skill.

I have an upcoming free LIVE training demonstrating my exact process on how I find strong stocks in less than 15 minutes using a very simple strategy.

What I will be revealing is a tested and proven counter-intuitive approach that you’ve probably never seen before, and it’s something you can apply almost immediately.

So if you’re excited to cut through the B.S and master the intricate skill of profitable trading…

Register your seats here and join me LIVE very soon!

P.S You can also get to ask me any stocks you are currently thinking of buying and I’ll show you if it’s a strong stock and whether the odds are stacked in your favour or not!


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Eric Lim

Having being coached in trading and in many aspects of life, Eric is a firm believer of success being the result of having a strong foundation. Hardwork, dedication, and practice are essential ingredients. He's always fascinated by the stock market and enjoys sharing his knowledge and discovery of the markets as a form of giving back to society. Swing and position trading are his favorite trading strategies.

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