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falang1 (97.80)

Hang Seng Index breaks through 14k, time for upswing?

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January 12, 2009 – Comments (4) | RELATED TICKERS: FXP , PGJ

As I'm typing this the Hang Seng is hovering around 13,900. The last huge 8 day rally had it up past 15,500 after coming off a 14,100 bottom. The recent drop has been short and deep.  I owned FXP  all last week and decided to pull out Friday  (It shorts the FTSE/Xinhua China 25 index but I figured that was close enough). I was obviously at least a day early but that is fine. My guess this week is to pick up some HKG, PGJ, SNO or maybe a 2x (DXHLX but this is a mutual fund) for the next big rally. Since October, the chart has had higher and higher bottoms until today, where it seems to have over-corrected. Either that or we are in for a drubbing.  Any thoughts on this?   And anyone know of a China 2x bull that is an ETF?

Disclosure: I live in southeast Asia, have been to Hong Kong Disneyland, and enjoy trading Chinese stocks. I do not currently own any of the stocks mentioned.

4 Comments – Post Your Own

#1) On January 12, 2009 at 4:36 AM, SuperPicks (99.53) wrote:

didn't the chinese govt lift the leverage ratios on its financial institutions recently?

and if thats the case, wouldnt that mean a vast increase in liquidity in the chinese markets (ie more money printed or in supply) --> thus leading to higher asset prices (assuming these financial institutions decide to increase their leverage up to the new allowable max)??

maybe somoene on caps can help with this. 

remember in the US, the SEC in 2004 increased leveraging limits for investments banks from 12:1 to 30:1. 

 

=D

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#2) On January 13, 2009 at 12:43 AM, falang1 (97.80) wrote:

It's desperately trying to climb up today. Poked through 14k a few times. Japan is getting absolutely hammered though. I went long with FXI yesterday (CAPS and RLP) and red thumbed FXP in CAPS. As for my picks above I researched more and HKG and SNO volume was too low to trust and between PGJ and FXI was a toss-up. I remembered FXI at the last minute. We'll see how it pans out. Earnings are a big wild card.

I am unsure also of the government lifting the ratios.  That worked well for the US, right?

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#3) On January 13, 2009 at 3:07 AM, falang1 (97.80) wrote:

Ooh, big down near the close.  Oh well, tomorrow is another day. 

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#4) On January 13, 2009 at 3:21 AM, falang1 (97.80) wrote:

Ooh, big down near the close.  Oh well, tomorrow is another day. 

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