China csi 300 Markets shanghai composite stocks

In China: Euphoria

Overt silliness.

Well, suffice to say mainland shares are excited about Donald Trump's decision to extend the deadline on trade talks with China. If you were quickly scanning your screens on Monday morning, you'd have been forgiven for thinking someone had made a mistake. Because it's not often that you see the CSI 300 surge 6% in a single day. But that's exactly what happened on Monday on the heels of Trump's late Sunday tweet proclaiming "substantial progress" on a variety of issues, including key structural sticking points. This was the best session for the benchmark since the wild days of 2015 when mainland shares were in the midst of a historic, margin-fueled bubble (that ultimately burst, prompting the creation of the vaunted "national team"). The SHCOMP had a similarly euphoric session. If it finishes this week higher (and after Monday, something would have to go horribly wrong for that not to be the case), this would be the eighth consecutive weekly gain. Both benchmarks are now in bull markets off the January 3 lows. This is - umm - quite something to behold. If you use a 9-day RSI (as opposed to the standard 14), this sucker is pushing the limits of what's possible (h/t to Bloom
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3 comments on “In China: Euphoria

  1. TronaldDump says:

    Fake news. Chinese accounting, that is. In fact, and let me make this clear, you can’t trust ANYTHING the Chinesers say. For example, a billion? My big fat hairy orange ass. In reality, the population of their country is only 22 million, and a small dog called ‘Bowser’.

  2. MacroGuy says:

    Need a border wall built for MXCN…national emergency.

  3. Interesting how the VIX is responding to this “euphoric” news. Last time the SPY and VIX were positively correlated to the upside for multiple days: late Jan/early Feb 2018. And that was a fun ride.

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