Since Goldman upgraded China Stocks to “Overweight” on Monday, perfectly top-ticking the Market, the Hang Seng Index suffered a c.10% drop.
Meanwhile, Hurricane Milton has been wreaking havoc across parts of the US. This parody publication has found a way to weaken the Hurricane. Here it goes:
“How can you downgrade a Hurricane?”
“Get Goldman to upgrade it!”
Problem solved!
It would be unfair to Goldman if we omit the real culprits of such wild moves in the Markets: the Monkey Funds who use actual money to Buy Tops and Sell Lows.
Hedge funds entered September with record low Chinese exposure… (h/t GS & Daily Shot)
…and they missed the greatest China rally EVER (even bigger than US post-GFC)…
…so they bought the most amount of Calls on China EVER, out of FOMO (h/t MacroCharts)…
…and now…
<DRUM ROLL>
…HEDGE FUNDS SOLD A RECORD AMOUNT OF CHINESE STOCKS AND ADDED TO SHORTS!!!
ARE YOU KIDDING ME??
At the same time, the PBOC has just started its $70bn swap facility to provide liquidity to institutional investors to buy stocks. It’s like….the PBOC actually cares about Stonks! This gives me an idea:
*SHRUBSTACK UPGRADES CHINESE STOCKS TO “STONKS”!
This is getting a bit silly really. Just as Goldman has upgraded China Equities to “Overweight”, here at Shrubstack we have simply graded them as “Casino-weight” i.e. this is a “traders-only” market.
“Traders-only” market means “Buy low, sell high”, the complete opposite of what Wall Street has been doing with China. These funds are better off to just keep buying Nvidia and let us have all the fun.
I think it’s time we create a new adage about such monkey behavior:
“If you’ve been in a poker game for a while and you still don’t know who the Monkey is, you are probably a hedge fund investing in China” - Le Shrub
Good luck out there!🌳
Disclaimer:
This isn’t financial advice. This is the equivalent of Monty Python for finance but worse: This is the trading blog of a shrub.
Don’t be Stupid. Seriously. How many times do I have to repeat this ….
Agnostonks!
An Amarillo Slim quote from the Shrub himself before CPI.
LFG!