phi16 (99.03)

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Homeless Chinese Broker Syndrome

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February 08, 2008 – Comments (3) | RELATED TICKERS: SNP , CEO , CHN

If you're a trader, if trading is in your blood and all you want to do is trade, and I have to assume there are many such types working for Chinese brokerages, then what do you do when the markets are closed in Hong Kong? You go out partying with friends Wednesday and sleep late on Thursday and party again all day Thursday and then you can't stand to be away from your trading desk much longer. So... you trade. Where do you trade? On the NYSE. It opens for business at 9:30PM Hong Kong time. And what does a Hong Kong trader trade on the NYSE? What he knows best -- Chinese stocks.

It's just a theory but if you look at all of the Chinese stocks I've been following, which BTW are down 30-54% since November 3, 2007, for Thursday you'll see each and every one are up except for one which was flat and two which are only down .3%!!

If the theory holds true, then look for all of these to back off to Wednesday night levels or lower by the end of the day, Friday, February 8, 2008. The Hong Kong market opens again on Monday and these guys can go back to work.

CHN,SNP,CEO,CHA,ZNH,CHL,CHNR,STV,

CTEL,CEA,CN,PTR,ACH,CPSL,YZC,BIDU,LFC,QXM,MR,CSR,JRJC

3 Comments – Post Your Own

#1) On February 08, 2008 at 9:17 AM, redearth329 (99.88) wrote:: I would presume that if Chinese stocks go up, it's because the people trading them don't "know them best" (i.e.: Irrationally exuberant Americans), and the Chinese are glad to take a day off. Of course, that opinion is based in my feeling that the Chinese stock market is a house of cards.
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#2) On February 26, 2008 at 3:59 PM, phi16 (99.03) wrote:: I checked the market and 23 out of 24 stocks were up. What are the chances of that happening when the lot of them have fallen 40% over the past few months. Even on good days I've only seen 18-20 of the 24 up. My theory is probably as far from reality as anything else out there but there is some tie to Chinese holidays and up days on Wall Street for Chinese stocks. I remember this same thing happening previously when the Chinese stock market was closed. I'll have to go back and check my memory in the stats.
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#3) On March 06, 2008 at 2:48 PM, hattyr (< 20) wrote:: hats off to you man. awesome trading idea.
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