Prefer to read today’s QuiCQ in PDF format? No prob, download it here!
Quote
In this week’s Quotedian titled “Awkward” we spoke a bit more in-depth about the rally taking place amongst Chinese stocks. We noted how a 30% rally has gone largely unnoticed or at least, uncommented, as China seemingly has become a “Market non-grata”. We highlighted the negative sentiment towards Chinese equity, quantitatively expressed via an elevated short interest to outstanding shares ratio (lower clip) on the iShares China Large Cap ETF (FXI). Now, we are also about to get a “golden cross” buy signal, as the 50-day moving average (blue) is about to cross (red circle)the 200-day moving average (black). Spoiler alert: It has already done so on the highly correlated CSI 300 index. More upside likely ahead!