220410 Asia Morning Analytics : A out of steam runs?

Dear Readers

Apologies over the lack of blog recently due to restructuring issues. We will be announcing the new layout of the dailies and weeklies within the next two weeks.

As to begin a new page from the restructure, I thought it would be nice to comment on our recent success in calling the feb low run up which yielded a 30% runs on export names such as cosco and our internal consumption plays on GE (3308.hk) and nwds (825.hk) which both yielded roughly 10 - 15% runs. Least not forget our gome (493.hk) and haier (1169.hk) call that yielded an extraordinary 30 - 50% return to th top. Most stock reached or neared our target price before turning around in the past few days.

Leading on from here, it is worth noting that many of these plays have fallen back nearing late feb level. Moreover, the earnings support from us mkt is also not exactly boding the mkt up. This could be seen thru the currency leads, which tends to see a break down, snd the fact that the market is not reacting too much to the good news. This appears to be a sign of the mamarket is running out of steam and needs to cool off a bit.

Hence, the theme today, suggests you that the reasoning to hold risk is becoming more and more inattractive. This favours the bears to come back in and take control of the mkt for a while.

This is also evident as the mkt is experiencing sector rotation whilst capital is trying to get out of hk.

(Herefore, I recoomend defensive plays in the coming week and try and sell into this rally.

Happy trading!
Ongy.