It’s more than just US markets though. China sold-off really badly:
Europe also down on strong breadth:
Interestingly, the three obvious factors selling-off are China, war beneficiaries, and mining. China down on no news, individual stocks like PDD 0.00%↑ selling off on pretty good earnings is very negative to me. Flows are dominated by sellers. Don’t fight the flows.
I sold my $HSTECH call options a week back, so well done to me.
Yesterday I made some intra-day trades which did well.
Sold some covered calls (Mar 20; 571 strike) on my SPY 0.00%↑ position at 10.34am ET.
I then bought to close those calls 12.54pm.
That’s a cool $74 per contract profit. Didn’t do much else, but am thinking of diversifying my trades going forward. Too much of my P&L is dependent on QQQ 0.00%↑ or SPY 0.00%↑ and I don’t like that.
The Hang Seng China Enterprises Index closed down 2.3%, taking its two-day drop to 4.6%, the steepest since Oct. 9. Technology shares bore the brunt of the selling after powering the market for most of the year. Xiaomi Corp. and Alibaba Group Holding Ltd. lost more than 3% each. Onshore, the CSI 300 Index dropped 1.5%.
Bearish calls have also started to crop up, with BofA Securities warning this week of a “meaningful correction soon.” Morgan Stanley sees volatility ahead, noting that onshore investor sentiment has cooled. The caution suggests the market has priced in the positives that emerged from the National People’s Congress earlier this month, when authorities pledged to support economic expansion and AI development.
Meituan’s quarterly revenue climbed 20%, suggesting the Chinese meal delivery leader is successfully fending off new domestic competition while expanding abroad.
The Beijing-based company has been exploring overseas markets in part because of a slowdown at home. Last year, billionaire founder Wang Xing took over the company’s overseas businesses, which for now are centered on the fledgling Keeta app. That division has shown initial success in Hong Kong, squeezing out Deliveroo Plc.
Asia flows are extremely bearish. Selling off without fundamental reason or newsflow.
Europe struggling to beat its previous highs. As a reminder, I continue to be short IEFA 0.00%↑
US net selling
Pre-market shows staples slightly up, but net outflows. Seems like traders trimming positions before April 2nd.
As always, here’s my portfolio:
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