The Start of Range Bound markets?

I am not trying to be a contrarian here, but I have to say the bull market is not here yet, it won’t be here until the markets at least reach the highs of previous year. Is the bear over? I am not sure, but I think it is a little further now. As the market bounced off the low and had a best week in 5 years, it sure proved the market is starting to feel confident about the Fed, but economy is still weak, the housing marketing might continuing tumble. You never know when would the markets be plummeting again. Therefore, from a neutral point of view, I dare to say it that we might already entered the range bound markets.

Value investing and good entering/existing strategies are very crucial in range bound markets. So rather than hoping for high returns over the years, I do recommend some mid term swing trading instead. If you are a very long term investor, and has no hurry to take your profits, then value investing is right for you. Wish you make the right choices.

This week I am stilling going to discuss 6 China related stocks. As Chinese stock markets are at their support levels, if the snow storm come to an ease, and the optimists of Beijing Olympics expand, there will be another rise in Chinese stocks.

1. 2. 3.

4. 5. 6.

1. ACH: The news on Friday seemed like brought some momentum to ACH. The trend line has been broken, the next resistance is around $50, where also lies 200 EMA. The support is at $33, but if the price fell back to the trend line and break it down, it might be a dangerous sign. The company’s fundamental is very strong, and PE is at the right level. I personally like it very much. However, discipline is the key when you do swing trading.

2. GSOL: The chart indicate a bullish divergence, but the price is just below the resistance. If the resistance could be broken in this week and stay above it. It might be a good buy. Then the resistance could act as support. Raise your stop, if the price moves up.

3.  HNP: HNP is still below that major trend line, but CCI indicates a improved momentum. The support is around $32, be discipline and ride the momentum. If the price could break the trend line this week, the next resistance is around 42. So make your own decision.

4. STP: I have been talking this stocks in many of my previous posts. But this time, it seems like an upward strength. I covered my shorts. I am ready to enter again, ride the upward trend if the price could break 57.50 level (VWAP)

5. TSL: This might be an dangerous plan, the company announced an change in the management last week, the price gapped down about 4 $, but it still hold above its support level. I will watch it very closely. Watch for any weakness or strength.

6. QXM: The company trading at a range between $9 and 7, so wait patiently, see which side it breaks first.

There are no major economic data this week, so the earnings are probably the only thing that will guide the market, but do pay attention on “surprise” news, and see how the merger deal between MS and Yahoo! goes. If the deal could get approval, I won’t be surprise to see other merger deals…. Apple and eBay maybe?

Good Luck and Happy Trading

 

 

A week began with tumbling stock markets…

It might be one of the toughest long weekends to American investors, as the equities markets around world were experiencing another black Monday, while they were sitting tight to wait for the (possibly horrible) Tuesday to come. I have covered a few short sell stocks in the past two or more weeks, and all of those stocks had reached my targets, so I won’t spend any time here to do any follow ups, but if you own any of those stocks, hold on to it, and ride the trends at least until tomorrow.

Today, I am going to cover 8 (12) Chinese stocks, which are publicly traded at either NASDAQ or NYSE. Although, some of the Chinese banks also announced their write offs that related to the subprime issues, and Chinese stocks markets has been tumbling down for nearly 1000 points in about a week (including Tuesday), I still have some confidence (if not huge) in the future of China, especially in the year of Olympics.

1. 2. 3.

STP, LDK and TSL are the three of the Chinese solar companies public traded on NYSE. Solar power no doubts has been considered as one of the best alternative energy available. The rise of Chinese Economy and large population will definitely generate enough demand for those solar companies. I mentioned STP in my previous posts, and it is at the support right now, the next support is around $45, will see what happens. LDK and TSL are also at theirs supports, I would not say it is the time to buy now, as the direction of market is still heading South, but those are definitely watch list stocks for your long-term portfolio. Another Chinese Solar company is YGE , I won’t spend much time on it now, but do some due diligent, if you consider to add any of them in your portfolio.

4. 5. 6.

BIDU and SOHU are two Chinese Internet companies, the former had been recognized as the GOOGLE of China, the latter has signed exclusive deals with Beijing 2008 Olympics. However, I would NOT say those stocks should be included in your long term portfolio, but there are definitely some short-term speculative opportunities. BIDU’s next support is around 220, whether the price can stop there and reverse is a question mark, but it worths observing. SOHU has a few supports below the current price level, seems like a better investment or trading candidate. Nevertheless, be careful, those stocks are pretty volatile. Discipline is critical! On the other hand, LFC is a Chinese insurance company. The insurance business in China is still not fully developed, another phrase it is still in its growth stage, so the potential is HUGE! The stock is trading around its support and below its downward trend line, so observe it closely.

7. 8.

CHL (China Mobile Ltd) has some merger activities going on currently, and the stock is trading under its downward trend line. I don’t think it will break this trend line any time soon, but supports are near, so sit tight, be patient. QXM is another stock I had covered before, it has been consolidating in the past two months, so watch for breakouts, either up or down.

There are also other Chinese stocks in my watch list, which includes, PTR, GU, XING…, which I would not spend much time here to analyze. But it doesn’t mean they have little potential. Actually, GU is one the stocks that I think is a good buy now.

Happy Trading & Investing