00:00I'd love to see what market structure looks like for China. Do you cover like Baba, Baidu?
00:06This is China. Let's see. And as you would expect, you know, so what this data tells you is
00:16at options expirations in September, whoever behind the scenes knows more than all of us
00:22about maybe not you, Dennis, about what the Chinese government is going to do
00:29had already made their bets because this is kind of there's a dip here. So supply is only 40
00:34percent. Contrast that with the S&P 500, 48 percent. And it's been at 50. So people made
00:42long bets right there. And now it's 10. Supply has risen well up into the 60s, but that is
00:49filling by orders. There is a shoe that drops. There isn't enough supply in the market to meet
00:55what the money needs. And so market makers create stock. They're exempt under Reagan MS
01:01from having to locate shares to short because they maintain an automated market so that the
01:06prices flow freely and you can trade any play. If you've got a marketable trade,
01:10it's going to get filled if it's one hundred shares, thousand shares, different deal.
01:15But that is going to have a consequence ahead. Where is it? But as you would expect, Dennis,
01:20huge surge in demand. How sustainable is it? I don't know.
01:24That's the question. It's hard. So things can stay at 10 a long time, though, sometimes.
01:28They can. Oh, absolutely. NVIDIA could go a month, month and a half at 10. It's not doing it now.
01:36It's not doing it now.
01:38What about BIDU? Does it look the same, B-I-D-U?
01:41Let's have a look.
01:42I'm picking on my stocks, but.
01:44Yes, you should. You know, you would expect it's very similar. Yeah, look at that. I mean,
01:50BIDU is even bigger. Massive covering of shorts right into September. Options expirations,
01:5718th, 19th, 20th were all options expiration dates. Then what would that be? 23rd, new options
02:04traded. Everybody squared the books on the 24th. So look at this massive surge in demand that
02:11preceded the move in price. That's why it's helpful to you traders. What you want is something
02:15that will tell you what's coming. And so if you have a massive, this is what we call a divergence,
02:21rising demand, falling supply, they're moving inversely to each other. And that's what caused
02:27the big surge in price. You can use that all the time to your advantage and then take the gains.
02:33I mean, if I'm looking at this, is it over? No, it's not over. But I'd be if I were trading this,
02:39I'd be looking at what happens into October. Expirations could be the end of it. I don't know.
02:44You know, we'll find out. It depends on how much belief people have in the capacity of a devalued
02:50currency to restore prosperity. And I'm telling you, it is zero. But we do it all over the planet.
02:57And you can and you could take advantage of that and trade risk assets profitably because of it.
Comments