illustration of market inefficiency in the asian zone, a buy and hold strat would have offered immense R:R, instead of trading this market. market rallied 2500 points which is 25,000 per HSI contract, in a few weeks. taking advantage of market manias across the globe is a prime inefficiency extraction.
couple of questions, are you trading the HSI futures and who with, I assume IB. Are the trades electronic or open outcry. Also have you done any correlation analysis on HSI vs DOW or QQQQ. Thanks.
the chinese markets move on their own whim. There is no significant correlation except the opening gaps, the gaps are used as a excuse to run position stops, and the native agenda takes a hold from then on. the chinese goverment has a interest in isolating financial market correlations from the rest of the world. And with the recent change in chinese investment in HSI, this market is enjoying the benefits of mania.
I thought that the Hang Seng and tech cycled together, but I think the China Factor looms huge. Are you trading electronic?
could see another 1000 points on the already overbought HSI tonight. i got my head handed to me a couple of days in mid august and i've been clawing back (recouped about 40% of the loss so far) as the market has been back to more normal volatility for the HSI/HHI. a bit afraid to trade it tonight. hopefully i don't do anything too stupid- it's a very difficult market to trade when the 'normal' vol of regular 100+ point moves in a minute become 100+ point moves every 5 seconds! thread carefully...