Retail Traders Turning Bearish Is Good News for Hong Kong Stocks
Some good news for Hong Kong investors: the plunge that has erased more than $750 billion from its stock market since late January may soon be over. The ratio of outstanding bullish-to-bearish contracts is near a 2 1/2-year low, reflecting a pessimistic view. “The market trend usually turns when retail investors become extremely optimistic or pessimistic,” Chau said in an interview in Hong Kong.