CHINA- BUYING OPPORTUNITY OR MELT DOWN?
Hey guys, justed wanted to point out that the news on the China interest rate hike seems to have hurt Chinese stocks listed in the U.S. markets more than we think. Majority of these stocks were bought because of China’s huge growth. The interest hike serves to curb that growth. At the same time however, I do notice that when the U.S. economy and market are doing well, many investors seem to ignore the play on China. I already see breakdowns in the following stocks:
- Chinese Medical (CMED)- gave back what it made after reaffirming impressive guidance. Lower bottoms in past three months.
- Aluminum Corp of China (ACH)- after an impressive run that seemed to follow ERS, ACH has been consolidating through a huge range. Just refuses to breakout.
- Suntech Power Holdings (STP)- this popular Chinese alternative energy stock has been consolidating in a down trend. Too bad… I thought this company could have been big.
- China South Air (CNH)- airplane company has been consolidating for a while, but just broke through support at $14.00 big time.
I’ll be squinting my eyes on these ADR stocks for the first week of May.
Predictions-Practice
I will be adding two new stocks to my predictions table: Netgear (NTGR), and U.S. Global Investors (GROW). These two stocks are attracting buyers, and I think I may be able to get on before the market realizes how strong these two are. Currently they are overbought so please take note of the buy entry point I set for these two on My Trader Notes.
Props to Stuck-Trader for buying call options in Gold Corp (GG)! Buying gold before the United Nations met with Iran was an intuitive move. We like that here on Intuitive Traders!
So there you go! The market has been very hard to read lately! For the beginning of May I need you all to watch the following industries or categorical stocks:
- Oil- tensions in Iran isn’t helping. Gas prices are ridiculous.
- Alternative energy- if we talk oil, we automatically talk alternative energy- ethanol, coal, etc. Read Jubak’s article as a start.
- Chinese listed stocks/ADRs- trading volume has been very low for these stocks throughout April (except for the more popular ones like SOHU), and the interest hike triggered a mild sell-off.
- Silver- after taking a hit earlier in the week, Gold and especially Silver made a swift comeback.
If you enjoy the content at iBankCoin, please follow us on Twitter
