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12:19
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Originally posted by NunoGomes:
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Enjoy weekend and drink responsibly lol . The flushing-out may or may not start I think, the support is getting stronger. Possibly there will be a range bound trading pattern forming before the market updates from the company. What I’ve noticed is just like retails doing research at a street level on Daigou or online channel sales , the brokers actually carry out their own on the ground research . And why wouldn’t you , if yourself and putting in tens of millions chips , you would probably hire a guy just to gather market intelligence to guide the investment decision apart from the charts snd desk top simulation. After all it’s what’s on the ground matters. The wordings from Bell Potter and UBS look to have fairly clear indications that they’ve done the research. I think Citi has also done the research and their HK branch has been behind the selling and shorting over the past months. As a logistic hub , their HK branch would probably have conducted some first hand intelligence on the logistic movements on IF in HK and concluded a selling/shorting strategy that’s been mega successful over the past a few months. However if you read Citi’s most recent update on A2M, they are now playing down the logistic and inventory issue and instead citing the rising of domestic competition. But we all know how A2M competes in China. This looks like a very broad brush just to cover their shorting position before they change their tone. Trading strategies are secretive among the top boys and can yield huge return for the investment banks. A friend of mine used to work for a major bank in HK once told me , a year end BONUS to the bank’s trade/fund manager on a good year was 50m HKD = $8-9m Aud paid in 1 single cheque to the fund manager.
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It takes a long time to turn the Titanic around but it's starting to turn ever so slowly.
(20min delay)