China Intervenes in Tech Selloff

Chickity-check yo self before you wreck yo self cos tech corrections are bad for your health, they come real stealth...

 ASIAN INVESTMENT-GRADE DOLLAR BONDS SELL OFF MOST IN A YEAR.— Breaking Market News (@FinancialJuice) March 9, 2021 

 🇭🇰 Hong Kong equity markets experienced the 2nd largest round of net outflows via the HK-China Connect schemes on Monday.

- Net outflows have been recorded in 5/10 sessions, breaking a 3-month stretch of daily inflows, incl. the 2 largest daily rounds of net outflows on record. pic.twitter.com/Gef9zsdJXe— Anthony Barton (@ABartonMacro) March 9, 2021 

 🇨🇳⚠️📉 The HK-China Stock Connect flows don't reveal anything overt in the way of overwhelmingly large buying of mainland shares. Net daily inflows via the northbound leg at ~CNY2.5bn into the close, which isn't noteworthy in outright terms. Maybe driving China shares ⬇️ again. https://t.co/ebanHBXlDT— Anthony Barton (@ABartonMacro) March 9, 2021 

The funds, known as China’s “national team,” stepped in to ensure stability during the government’s key policy meeting in Beijing, according to people familiar with the matter.

With the CSI 300 having fallen about 13% since its peak to enter a correction on Monday, and dropping below its 100-day moving average for the first time since May, it’s likely authorities decided the rout had removed enough froth.

In line with the goal of supporting growth, the government’s planned fiscal consolidation in 2021 will be more modest than we had previously anticipated, although the starting position is also stronger thanks to robust land sales and lower-than-expected public spending last year.

The government’s headline target is to reduce the deficit from “above 3.6%” in 2020 to 3.2% in 2021.

We estimate the consolidated fiscal deficit will moderate to 7.5% of GDP this year, from 9% in 2020. Prior to the budget, we had expected the deficit to fall to 6.1% in 2021 from about 11% in 2020. Fitch consolidates four public sector budgets in our analysis of China’s fiscal accounts, to include official budgetary activity that falls outside of the headline deficit, such as spending associated with the ongoing infrastructure stimulus.

 1M EMFX Returns..... pic.twitter.com/yYol2HllAE— LongConvexity (@LONGCONVEXITY) March 9, 2021 

 "The pace of vaccinations surged to 2.9mln doses/day on Saturday with the 7-day MA now at 2.2mln. As of 6AM March 7th the CDC reported 90.4mln doses administered with 58.9mln individuals having received one or more doses."

🙌— Yield Curve (@TenYearNote) March 9, 2021 

 To match the increase in supply, vaccine centres being expanded and NHS stewards asked to volunteer for more shifts. Officals are cautious, but the maths suggests all over 50s (groups 1-9) may now be jabbed by the end of March - two weeks early. More on @TimesRadio after 8am.— Tom Newton Dunn (@tnewtondunn) March 8, 2021 

 Looking at average momentum z-scores for sectors (12m + 6m mom), we’re seeing a BIG shift in large-cap over the last 6 months.

📉 Communication Services, Technology, and Real Estate

📈 Energy and Cyclicals

BUT don’t assume your momentum ETF will pick up on this... pic.twitter.com/rgFcyG9Teo— Corey Hoffstein 🏴‍☠️ (@choffstein) March 8, 2021 

 Within R1K universe, looks like market-cap weighted z-score of bottom half is picking up pic.twitter.com/FhDFfGYiC0— Corey Hoffstein 🏴‍☠️ (@choffstein) March 8, 2021