All markets are exciting as they can get, with major moves across indices, commodities, currencies, you name it! The sentiment of the day is “risk on, long US$” and nowhere was that more clear than in the Chinese markets today (Japanese dittos are posting an honourable effort though!) as there were absolutely ridiculous gains to be had in China. I mean, just look at what the Shanghai A-Shares Top 50 did:
I’ll get into the technical analysis a bit later, but at the moment, I’ll summarize what the static data generated is:
- Hang Seng Index:
- Spot high-low-close-return: 23 784 / 23 294 / 23 654 / +1.23%
- Futures-implied spot HLC: 23 798 / 23 256 / 23 721
- Turnover high again at HK$104.4 billion, but slightly down from yesterday’s ~HK$105 billion.
- Implied volatility on the VHSI down 2.9%
- Hang Seng China Enterprises Index:
- Spot high-low-close-return: 11 199 / 10 815 / 11 126 / +2.84% (!)
- Futures-implied spot HLC: 11 207 / 10 806 / 11 151
- Turnover high again at HK$29.7 billion, but slightly down from yesterday’s ~HK$32 billion.
- Shanghai Composite:
- Spot high-low-close-return: 2 777 / 2 666 / 2 766 / +3.11% (!!)
- Shanghai A-Shares Top 50: HLCR: 9 038 / 8 425 / 8 946 / +6.18% (!!!)
- Turnover extremely high at RMB397.24 billion, but slightly down (!) from yesterday’s RMB401.15 billion.
- Shanghai – Hong Kong Stock Connect:
- Northbound quota balance use at RMB3.31 billion.
- Southbound quota balance use at RMB303 million.
- Southbound trading saw a RMB54million block trade to start off the day, and was ferocious after the lunch break, when the rally started in earnest.
- Northbound trading was net selling of Chinese shares for the first few minutes, to the tune of RMB128 million, as the markets overall opened down relative their Monday closes. Buying then quickly took over once the trading really started getting one-sided towards the buying side.
- Hong Kong Monetary Base:
- All quiet on the monetary base front… nothing of note to really report on here.
NOTE: For the futures-implied spots, I think my CFD provider for some reason uses a combination of futures in long and short fashion that consistently makes the Hang Seng Index undervalued by about 20-25 points, and the Hang Seng China Enterprises Index about 10 points undervalued.
Time for some technical analysis!