Hang Seng Up 1628 points today!
The Hang Seng Index has got back above 14000, closing at 14330 today. Will this last? Frankly I believe that this is up too fast. It’s up more than 3000 points in just 3 days. The sentiment in Asia Pacific today certainly helps with the rise with US lowering 0.5% of interest rate. But I believe it is also due to the settlement of October futures today. I believe there is a lot of short covering which forces shares to go up these days.
This V-shape bounce doesn’t really signal the end of the bear cycle. I would think that the end of bear cycle would be when there are no more big actions in the market, when volumes are all dried up. I won’t be surprised if HSI will go back down to 12000 this year.
