As Mr. Lu Xun aptly put it: If you don't agree, come to Hong Kong stocks!
Yesterday’s Hong Kong market, aside from hitting the 19,200-point 'fattest bull,' $Hang Seng Index (800000.HK)$also plunged to a low of 19,189.54 points, just 11 points shy of breaking what I consider the secondary bottom formed on May 10th.
My entire investment strategy for Hong Kong stocks over the past few months has almost entirely revolved around this secondary bottom,as historically, during every bear market in Hong Kong stocks, the market has never broken below the secondary bottom.
So no matter which support levels were breached or how turbulent the short-term volatility became—even with the 'fattest bull' slaughtered—as long as this secondary bottom wasn’t broken,19,178.89 pointsmy strategy retained its solid foundation. It is precisely because of this confidence that my position in Hong Kong stocks is now nearly fully loaded.
Thus, without additional capital inflow, when Hong Kong stocks plummeted yesterday, I decided to $XIAOMI-W (01810.HK)$I liquidated my position in Xiaomi (for analysis, refer to the article from this past Tuesday; I will also post another article on Xiaomi's long-term core logic later) and switched to a double-leveraged Hang Seng Tech ETF with an equivalent amount.
Today’s surge in Hong Kong stocks was led by the Hang Seng Tech Index. $CSOP Hang Seng TECH Index Daily (2x) Leveraged Product (07226.HK)$This means doubling the gains of the Hang Seng Tech Index (similarly, if it falls, the losses are also doubled, as gains and losses are inherently linked).
Xiaomi rose 3.65% today, while the double-leveraged position surged 11.91%. I’m quite satisfied with this stock swap.
PS: Xiaomi actually doesn't...