Cashed out of HK market. Weekly cap (24 Sep 2021, Fri)

SG(risk-off) HK(risk-off) CN(risk-on)

Cashed out of HK market. Weekly cap (24 Sep 2021, Fri)
Photo by Clayton Robbins / Unsplash
Stock index Daily change 21EMA* 50EMA* 200EMA*
Hang Seng Index -1.30% -4.12% -6.83% -10.60%
Straits Times Index -0.49% -0.55% -1.30% 0.46%
CSI 300 Index -0.08% -0.80% -1.75% -2.40%
Shanghai Composite Index -0.80% 0.05% 1.20% 3.78%
Shenzhen Component index -0.70% -0.96% -0.35% 4.05%
ASX 200 -0.37% -0.86% -0.93% 3.65%
Nikkei 225 2.06% 2.38% 4.54% 8.44%
NASDAQ 100 0.09% 0.06% 1.35% 10.61%
S&P 500 0.15% 0.16% 0.77% 8.15%
Dow Jones Industrial Average 0.10% 0.06% -0.11% 5.04%
S&P 400 mid-cap -0.16% 0.16% 0.02% 5.49%
S&P 600 small-cap -0.19% 0.67% 0.32% 5.84%
German DAX -0.72% -0.62% -0.77% 3.97%
French CAC 40 -0.43% 0.55% 0.91% 6.62%
UK FTSE 100 -0.38% -0.11% -0.31% 2.43%
* percentage over exponential moving average

Hong Kong market has been volatile in recent months. The last time I cashed out from the HK market was near the end of July 2021. After sensing a bullish change in the HK market on 31Aug2021, I started rebuilding my HK portfolio. I cashed out from the HK market this week again when the mood turned bearish, leaving only a position in 257.HK (China Everbright Environment) which I have taken partial profits. The reasons for keeping 257.HK was that the price action in 257.HK was not too horrible and the fundamentals are attractive.

Fortunately, the HK portfolio was small as I did not see attractive momentum breakouts to add to the portfolio. A few good stocks like 257.HK and 1205.HK which made strong moves helped provide a small profit during this brief period.

Action for HK market (risk-off):
- Take a rest
- Sell remaining stock in portfolio on weakness

Singapore market remains weak.

Action for Singapore market (risk-off)
- Get the stops ready and sell remaining stocks in the portfolio on weakness.

China market performed well throughout most of the week except Friday. This was surprising because I expected the Evergrande crisis to maul the market but Shanghai Composite index went up instead. I resumed buying. Friday was a bad day for my portfolio. 1 stock that I bought on Friday went limit-down (10% down) on the same day and another one almost went limit-down. What asshole market timing. Fortunately, one of the stocks I bought yesterday went limit-up today and the position size is much larger than the limit-down losers today.
The broad market was bad on Friday. The number of limit-down stocks exceeded the number of limit-up stocks in both Shanghai and Shenzhen exchanges. I have not seen this for some time. On a positive note, the number of new highs still exceeds the number of new lows for both exchanges.

Shanghai exchange broad market 25Sep2021 (https://www.etnet.com.hk/www/tc/ashares/index.php)
Shenzhen exchange broad market 25Sep2021 (https://www.etnet.com.hk/www/tc/ashares/index.php)

Action for China market (risk-on):
- Get the stops ready and sell stocks in portfolio on weakness.
- Halt buying for the time being.


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