Why It's a Good Time to Consider Chinese Stocks

While yes I am short term bearish on the markets, one area of massive strength lately has been the Chinese stock exchange, SSEC. Although it is beginning to show some negative divergences (RSI/TRIX above), it has successfully broke through it’s 200 MA and should be on everybody’s radar who wants exposure to this region. A pullback near its 200 MA would be an area that I would start to add some of these stocks to my portfolio. Note the series of higher highs and higher lows.

This is just a partial list as I’ve excluded many lower price/volume issues.

ACH ASIA BIDU CEO CHA CHL CSIQ CSR CSUN CTRP EDU FMCN JASO LDK LFC MR NTES PTR PWRD SINA SNDA SNP SOHU SOLF STP TSL YGE YZC

Comments

[notsosmart:]

well-its your hard earned money.can you really trust this communist dictatorship that own us?

Mar 29 11:59 AM

[Jeff Pierce:]

Sorry Adman, I don't subscribe to any subscriptions anymore. Years ago when I got started I did, but I actually enjoy creating scans and building my own watchlists.


On Mar 29 11:56 AM EX-AD-MAN wrote:

> Your list looks a lot like subscription newsletter editor Robert
> Hsu's - so I'm curious, has he added all of these solars recently?

Mar 29 01:04 PM

[Jeff Pierce:]

I'm not trusting anybody but the charts.


On Mar 29 11:59 AM notsosmart wrote:

> well-its your hard earned money.can you really trust this communist
> dictatorship that own us?

Mar 29 01:04 PM

[Alphameister:]

Most of the stocks in your list (several of which I own) have had big runs recently and I'd be reluctant to chase them here. For some that have not and which appear to offer superior value, check out APWR, CMED, CPBY, CPSL, SORL, and SUTR. Big believer that Chinese stocks are embarked on a new bull market.

Mar 29 01:06 PM

[notsosmart:]

charts cant move goalposts. govt's can.

Mar 29 03:19 PM

[HALFTRACK:]

WELL FOLKS ITS BETTER TO INVEST YOUR HARD EARNED MONEY WERE YOU HAVE AT LEAST A CHANCE TO "MAKE MONEY IN THE LONG RUN"RATHER THAN IN THE USA ACCOUNTS,WERE ITS DOUBTFUL!! TO THAT OTHER PERSON WHO SAYS "CAN WE TRUST THAT COMMUNISTIC DICTATOR WHO OWNS US ? " YOU MUST BE REFERING TO OBAMA AS HE WENT TO RUSSIA YEARS AGO TO BECOME A COMMUNIST VIA RUSSIAN EDUCATION AS PER: "AMERICAN FREE PRESS -REPORTER "-TOM FIFE :AND A HIGH RANKING MEMBER OF THE ' SOVIETS RUSSIAN COMMUNIST PARTY! PLEASE CONTACT " AMERICAN FREE PRESS 645 PENNSYLVANIA AVENUE SE SUITE 100 WASHINGTON DC.20003 OR AMERICANFREEPRESS.NET FOR MORE DETAILS !!!!!!!!!!

Mar 29 04:27 PM

[Mad Hedge F...:]

You should be leading up. The one screaming buy out there now are the emerging markets. The US, Europe, and Japan are now committed to spending trillions of dollars to shock the global economy back to life. This is costing the emerging economies nothing, and gives them a free ride back to prosperity. IT turns out that the smaller economies are financially better off than the big ones, with a decade long export boom blessing them with massive foreign exchange reserves and little debt. China, Russia, India, Brazil, and Turkey will be the big beneficiaries. You can buy the specific ETF’s for these countries, or go with the generic iShares MSCI Emerging Market ETF (EEM), which has already started to outperform US markets in a big way. It’s a once in a century opportunity to buy the highest growth corners of the world’s economy at severely knocked down prices.

Mar 29 08:23 PM

[Alan Young:]

There are undoubtedly values in the Chinese markets, but you can't invest on the Shanghai exchange, so that's not a very good indicator--especially if (as you say) ALL you depend on is the charts! Prices in Shanghai do not always correlate to price movements in Hong Kong and/or in the ADRs you have listed. So if you are relying on T/A, you should be using the appropriate chart.

Personally, I like China as an investment destination, but try to pick stocks and sectors that are not export-dependent.

Mar 30 02:32 AM

[Hmm?!:]

Does anyone have thoughts on PGJ? I have been waiting for a retrace. It had a great move for several years and then I dumped near its peak about a year ago.

Mar 30 10:45 AM

[frflyer:]

halftrack
Where do you get your information, the John Birch Society?
Michael Savage? The Enquirer? The Art Bell show?
You're wrong. Obama is actually in league with the Grays, you know, those aliens with the big eyes from planet zgeigwst in that other universe who keep slipping into ours to advance their galactic communist agenda.

Mar 30 01:43 PM

[Saurischian:]

These comments are a lot more fun that the SIRI board on Yahoo Finance.

I like the Chinese Solars!

Made some money with them the last time oil was over 120.

Looking forward to more next time around.
JASO LDK CSIQ

Mar 30 02:55 PM

[dybydx:]

Guys, lets face it, we now know that the best companies to invest in are those too big to fail.

In China, almost every mega corp is 50%+ owned by the state. How can they possibly fail? This is a free government handout.

Remember the last time the SSE index took a plunge? The gov immediately changed tax laws to bail them. If you need any other reason to support the communist regime, look no further than the SSE.

Mar 30 04:52 PM

[Clint007:]

You must be 75 years old!
That is the old school.China already own a huge US dept, so you better be gentle with them otherwise the all financial system will colapse if China decide to get dept out of their market.


On Mar 29 04:27 PM HALFTRACK wrote:

> WELL FOLKS ITS BETTER TO INVEST YOUR HARD EARNED MONEY WERE YOU HAVE
> AT LEAST A CHANCE TO "MAKE MONEY IN THE LONG RUN"RATHER THAN IN THE
> USA ACCOUNTS,WERE ITS DOUBTFUL!! TO THAT OTHER PERSON WHO SAYS "CAN
> WE TRUST THAT COMMUNISTIC DICTATOR WHO OWNS US ? " YOU MUST BE REFERING
> TO OBAMA AS HE WENT TO RUSSIA YEARS AGO TO BECOME A COMMUNIST VIA
> RUSSIAN EDUCATION AS PER: "AMERICAN FREE PRESS -REPORTER "-TOM FIFE
> :AND A HIGH RANKING MEMBER OF THE ' SOVIETS RUSSIAN COMMUNIST PARTY!
> PLEASE CONTACT " AMERICAN FREE PRESS 645 PENNSYLVANIA AVENUE SE
> SUITE 100 WASHINGTON DC.20003 OR AMERICANFREEPRESS.NET FOR
> MORE DETAILS !!!!!!!!!!

Apr 05 11:11 AM

[Paul H. M.:]

It's also worth noting that when the U.S. was an emerging market (early 1900's), we had several spectacular crashes in which shareholders lost everything.

The lesson: it's better to pick a fast-growing company in a mature market (like AAPL or RIMM) rather than a who-knows-what-you-buying Emerging Market ETF.

Also, investing in your home country provides the investor with more legal avenues than investing in places that haven't established as much rule of law.

I put some of my money in ADRs and ADR calls, but overall, I still believe that grossly-undervalued American companies have a more secure future (meaning you're less likely to have your stock go to zero if you keep your money out of China or South America).


On Mar 29 08:23 PM Mad Hedge Fund Trader wrote:

> You should be leading up. The one screaming buy out there now are
> the emerging markets. The US, Europe, and Japan are now committed
> to spending trillions of dollars to shock the global economy back
> to life. This is costing the emerging economies nothing, and gives
> them a free ride back to prosperity. IT turns out that the smaller
> economies are financially better off than the big ones, with a decade
> long export boom blessing them with massive foreign exchange reserves
> and little debt. China, Russia, India, Brazil, and Turkey will be
> the big beneficiaries. You can buy the specific ETF’s for these countries,
> or go with the generic iShares MSCI Emerging Market ETF (seekingalpha.com/symbo...),
> which has already started to outperform US markets in a big way.
> It’s a once in a century opportunity to buy the highest growth corners
> of the world’s economy at severely knocked down prices.

Apr 06 11:27 PM