Thanks PBOC! We are exiting our China long

Does the squeeze have legs?

Positioning in local China stocks remains very low, though it is starting to rebound due to the buying over the past 1.5 weeks. Chinese ADRs have been the most bought region over the past 20d. Positioning could continue to support a further rally, but the easy money has been made. We are exiting our opportunistic tactical long that we put on on the 19th (here). Back then we wrote: "...setup is starting to resemble what we saw earlier this year". Since then, the CSI 300 index is up 11%. We say thanks PBOC & positioning. We got what we wanted.