Financials led rally yesterday caught Chinese ADRs on fire, too. This week has been rewarding for China stock investors so far. As the following table displays, 38 Chinese ADRs are on the black vs. 8 on the red since last Friday. We are here to find stocks with outstanding momentum, a momentum that can carry on for the rest of the week. To accomplish this ambitious goal, we'll use simple technical indicators, 10-day, 30-day, 50-day , and 200-day moving averages or DMAs.

We like stocks that fulfill the following criteria:

1. Last closing price is above 50-DMA
2. Last closing price is above 200-DMA
3. 50-DMA shows positive trend
4. 200-DMA shows positive trend
5. 10DMA is above 30-DMA

Looking at the following summary table of Chinese ADRs, we find only one stock with true momentum: The9 Ltd. (NCTY). Other stocks with notable momentum include Guangshen Rail (GSH), China Netcom Group (CN), China Unicom Ltd. (CHU), UTS Starcom (UTSI) and Yanzhou Coal (YZC).

						Technical				Moving Average
Stock	Ticker	7/11/2008	7/16/2008	% change		>50 Day	>200 Day	10DMA>30DMA		10DMA	30DMA	50DMA	200DMA
The9 Ltd.	NCTY	25.03	25.55	2.1%		X	X	X		25.20	24.60	24.32	23.87
Guangshen Railway Co	GSH	24.41	24.56	0.6%		X		X		23.21	22.90	24.31	31.28
China NetCom Group	CN	58.56	60.61	3.5%		X	X	X		56.95	55.91	59.30	59.36
China Unicom Ltd.	CHU	19.76	20.55	4.0%		X		X		19.28	18.76	19.93	21.07
UTS Starcom INC	UTSI	5.57	5.45	-2.2%		X	X			5.20	5.42	5.00	3.56
Yanzhou Coal Mining Co	YZC	19.45	20.24	4.1%		X	X			18.80	18.89	19.43	18.32
Netease.com Inc.	NTES	20.57	20.94	1.8%			X			20.87	21.77	22.41	20.09
3SBio Inc.	SSRX	8.85	9.46	6.9%						8.91	9.38	9.76	12.06
51Job Inc.	JOBS	17.48	16.46	-5.8%						16.94	18.07	18.36	18.65
Aluminum Corp. of China	ACH	29.21	27.80	-4.8%						27.75	32.11	36.54	48.06
American Oriental	AOB	8.72	8.99	3.1%						8.74	9.77	10.33	10.36
Baidu.com	BIDU	305.08	298.94	-2.0%						313.01	321.95	335.94	318.14
China Eastern Airlines	CEA	29.13	30.14	3.5%						29.06	32.97	37.69	66.30
China Finance Online Ltd.	JRJC	16.14	17.91	11.0%						16.15	17.28	19.49	21.58
China Gren Tech	GRRF	4.29	4.21	-1.9%						4.30	4.72	4.87	6.90
China Life Insurance Co	LFC	53.60	54.43	1.5%						52.10	53.80	57.60	68.33
China Mobile (Hong Kong)	CHL	66.03	67.96	2.9%						66.07	67.82	73.47	80.35
Sinopec	SNP	92.12	96.01	4.2%						92.15	96.28	97.79	116.41
China Southern Airlines C	ZNH	18.31	21.16	15.6%						19.13	22.34	26.04	46.98
China Techfaith Wire	CNTF	4.25	4.01	-5.6%						4.22	4.34	4.76	5.49
China Telecom Corp. Ltd.	CHA	55.34	55.44	0.2%						53.53	56.33	61.80	71.08
CNOOC	CEO	167.47	159.69	-4.6%						166.81	167.91	174.01	168.06
Comtech Group	COGO	4.50	4.50	0.0%						6.29	9.29	10.79	13.63
Ctrip.com Ltd.	CTRP	40.96	42.74	4.3%						41.92	46.64	52.56	53.71
Focus Media Holding	FMCN	23.54	27.06	15.0%						25.39	27.84	32.37	45.49
HSBC Holdings Pls.	HBC	73.57	75.16	2.2%						74.72	78.17	81.21	83.43
Huaneng Power Inc.	HNP	27.28	26.69	-2.2%						26.37	29.93	31.02	36.42
Hurray! Holding	HRAY	3.00	3.09	3.0%		X				3.06	3.08	3.01