HSCEI - after a 2 year consolidation, it's ready for prime time

US markets roaring along with the value rotation well underway since November. This coincides with a move into emerging markets with a weaker US dollar. China is the key constituent within emerging markets and also one of the best performers during COVID still delivering solid GDP growth with continued expectations above 6%.

HSCEI is a value heavy index (Financials, commodities, energy) and so is the best play from a macro point of view, intersecting EM / China / Value (only at 11x trailing PE).

The chart tells the same story and after a 2 year long consolidation, it broke out and as is typical, pulls back to around break out level and ready for the main wave 3 move now.