The recent “run on the Chinese burritos” as we term the high beta smaller cap China stocks here at iBankCoin, has cast a dark cloud above all China stocks in general. To be sure, not all of these firms are outright frauds. In fact, it is highly probable that several weeks, months, or quarters from now we will look back on this time in amazement how cheap some of the innocent bystander China stocks had become.
One Chinese burrito that caught my eye today is Focus Media Holdings. Note the very strong buy volume of late as the stock broke above its falling resistance trendline, possibly indicating that buyers of size have come around to the idea that this is not some two-bit fraud like a few other select burritos.
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CHess,
In your experience what do inside days portend?
well, this one is getting nasty quick–i’ll talk about it on recap
RACIST!
Thank you, sir.
Booth, I think OUTSIDE days/weeks/months are great indicators but don’t really follow inside days. Have you had much luck with them?
Also, chessnwine, I really liked your blog post so much that I did my own analysis of the stock on my blog. I’d be curious to hear what you think of my reading. http://stockwatchpro.wordpress.com/
Thanks,
Scott
Yea i agree outside days are great indications of strength and momentum. Inside days not so much. For the most part depending on location they dont mean much on their own.
Location does matter for inside days, and after a hammer or a reversal candle they can be bullish.
Got it.
Thanks, Scott. I agree with your analysis. The heavy buy volume gives the bull case a lot of gravttas, but they still need to create a meaningful higher low and proceed up.