A handful of investors might be disappointed with what they see as lacklustre performance of the Hong Kong equity market over the past year. But sometimes being out of the limelight is the place to be. Tiny increases in US indices might have nudged them to successive record highs, but those moves have been barely noteworthy and frequently spurred by no more than a lack of suitable investment options, hype and hot air. What this chart shows is that the Hang Sang Index is currently stable, strongly tethered even, and comfortable in a broad range between 21,400 and 23,950 points. Indeed with historical and implied volatility low, it suggests traders should continue to position themselves for the status quo. Trading that status quo offers ample scope for profits, given the 11 per cent price range it spans.
