Oil came back $2.16 to settle at $131.04 at the New York Mercantile Exchange sending investors to cash in previous gains. Bank of America reported better-than-expected losses following similar announcements from Citigroup, JP Morgan & Chase and Wells Fargo. Some take this as if the worst is over however earnings prospects are soft for many industry leaders such as Merck and Schering-Plough Corp. Despite weakness in the U.S. markets shares of Chinese companies listed in the U.S. ended the day on a high note. The overall China ADR Index (CAI) gained 14.38 points today with NASDAQ listed Chinese ADRs outperforming their NYSE counterparts.

In this volatile environment looking for momentum stocks is important. here is a list of stocks that portray such momentum measured by their 10- and 30-day moving averages or DMAs. the following five stock have their 10-DMA surpass of their 30-DMA. On the flip side all their current price is BELOW 10-DMA, a sign that their current rally may have some to a temporary halt. Still, I think this table is good to look at and check on the stocks that might be of your interest.

For the week, Chinese stocks sufered heavy losses. The "BEST" five stocks for the week were: LONG, TSL, UTSI, SNP and HTX. ELong Inc. said it will announce fourth quarter financial results on February 26, 2008. There is a strong chance that the company will beat analysts expectations, estimates that the company will return to the black. Elong has long been conceived as underdog when it came to industry rival Ctrip.com (CTRP). Ctrip.com has been delivering strong earnings with impressive earnings growth and came under fire lately after heavy snowstorms created havoc right before the Chinese New Year. Bad weather halted trains, mass transportation all over China, denting into CTRP's profit.

With no action in China in due to the Chinese New Year kicking in, U.S. listed Chinese stocks or adrs tracked U.S. market sentiment very closely. Regarding the home market, Wall Street finished a dismal week with a mixed performance Friday as investors grappled with fears about insurers of distressed mortgage-backed bonds and anxiety about the broader economy. The DJIA dropped over 60 points while the NASDAQ composite gained.

China stocks post biggest weekly loss in a decade: China's main stock index closed Friday with a weekly loss of 8 percent, its biggest weekly drop since May 1997. Chinese ADR portfolio was just as bad with no clear indication where the bottom is. Look up from the table below how your Chinese stocks did.

What did I predict? If U.S. falls Chinese small caps will tumble. Here it is. Next week Monday and Tuesday will be even worse. Recovery on Wed-Friday. Watch!

2006 was “The Year” for Chinese stocks. A seemingly unquenchable investor thirst for all things Chinese helped propel the Shanghai Composite Index to a 130% gain for the year, followed closely by the Hang Seng China Enterprise Index.

Liquidity, or the ability to buy and sell large blocks without effecting the share price, is perhaps the most important factor for institutional investors in choosing where to execute their trades. Looking at the Chinese stock universe from an American investor’s point of view, there are three markets that investors would consider: the NYSE, the NASDAQ and the Hong Kong Stock Exchange. Investing in Shanghai and Shenzen is still limited for foreigners and is further complicated by corporate accounting differences and information asymmetry.

Our previous Newsletter focused on the NASDAQ names of the U.S. listed Chinese stock universe. As we said, this issue will give readers a unique perspective of the NYSE listings. As the following chart shows, we chose the twenty biggest names by revenue from the NYSE universe this time . We will compare them to make a point that not everything that shines is gold. In other words, not all the big liquid names offer investment opportunities just because China is growing fast.

I can’t help but quote from our February Newsletter, page 4 last paragraph. “Based on our latest field trip to China, Chinavestor.com expects The9 Ltd. (NCTY) to report a nice surprise. On the other hand, we did not see much activity of Shanda’s line of products and expect the battled game and home entertainment developer to slip.” End of quote.

Chinavestor noticed when China Mobile (Hong Kong) Ltd. (CHL), the world’s biggest wireless carrier, announced on Dec 13, 2005 that it is seeking to sell shares domestically to complement Hong Kong and New York listings. And again when Aluminum Corp. of China (ACH), the world’s second largest alumina producer, announced plans to take its A-share companies private, paving a way for its own listing in mainland China. The Company will need a total of more than 5.6 billion yuan ($694 million) to buy the shares it does not own in it’s A-share units.

Chinavestor “Stock of the month” ends up 5.2% in 2005 and is up 55.6% since inception, despite the fact that China’s booming economy failed to translate into stock-market gains. Defying rises in oil prices and interest rates, Asia stocks rose as domestic economies picked up and foreign funds sought cheap valuations. But the country level performances were far from uniform with indices in the greater China region at the bottom of the list.

Chinese Companies have come a long way compared to even a year ago. It used to be hard to find relevant information about financials, quarterly reports submitted to the Exchanges on time were the exceptions.

Even though China’s economy continues to boom, to transform that into the green in our own pocket, is a different story. Investors have to remember that not economic growth but corporate earnings are driving stock prices. For the most part, of course. In addition to current earnings, seasoned analysts have to be able to differentiate between high– and low-quality earnings.

On a quiet Wednesday, August 31st, China Telecom (CHA) Corp. Ltd., China’s last major NYSE listed player reported earnings. The market hardly noticed as investors worried about high oil prices and news of a hefty share sale by PetroChina (PTR). For us, however, this quiet day was much more. We can now kick back and get a sense of what is going on in China, in micro level. Because we all know that economic growth doesn’t necessarily translate into steady stock-market gains, and the Chinese market faces numerous challenges, ranging from company scandals and limited corporate disclosure to efforts by the government to sell its large stake in Chinese companies without hurting the share prices.

On a quiet Thursday, July 21st, China scrapped the Yuan's decade-old peg to the U.S. dollar and shifted to an undisclosed basket of currencies to manage the currency. As part of the move, the central bank revalued the Yuan to 8.11 to the dollar, effectively a 2.1% in crease in the Yuan's value.