In recent weeks we have highlighted that while most attention remains on the US market, the real action has been in China where stocks are not only trading at a 10-year high (and on the verge of a historic breakout) but where the Chinese version of Nvidia has exploded to record highs in recent days even as the US equivalent has found itself struggling. Fast forward to this Friday when Bank of America’s Michael Hartnett picked up on this tends and writes in his latest Flow Show (available to pro subs) that “quietly China has been world’s best performing stock market over the past 2 years, but China stocks remain near lows vs China bonds, in stark contrast to the US, Europe & Japan, where stocks are at all-time highs vs government bonds.” Not only that, but as we also showed last week, unlike most markets China’s stocks remains far below their previous all-time highs and in a world where retail momentum traders seem to dominate price formation (for now), this suggests much more upside especially if Beijing decides it wants to really crank up the local “wealth effect.”

China aside, in his latest Flow Show Hartnett decided to go with an abbreviated edition (understandable, since most traders are on the beach this week), and in addition to the weekly flows data…