The Hang Seng Index (HSI) Continue to Drop Following the Corona Virus Outbreak In China – Here is How to Protect Your Portfolio and Profit
About the Virus: The Corona Virus originated in a seafood market in Wuhan conducting illegal transactions of wild animals, authorities have said. The market has been shut down since the corona virus outbreak, which caused for more than 500 confirmed cases and 17 people that have died. Today we learn about a sense of anxiety that in Wuhan as the Chinese city (11 million people!) goes into lock-down in an effort to control the spread of the virus. The authorities have suspended all public transportation, including planes, subways, ferries, buses and trains that goes in and out of the city.
Accordingly, investors fear the implications on the economy and the potential for wide spread of the virus. Currently China’s Hang Seng Index (HSI) is trading at 27,910 and is trending down after hitting resistance at 29,000. We believe that more investors will sell the HSI in order to remove the potential risk from their portfolios, until we hear more positive constructive news about the virus spread. Traders can take advantage of this situation and sell SHORT the HSI and look to Take Profit as the Index decline down to 27,000 and a second profit target down at 26,000.
Look at the two charts below to view how to trade the HSI Index