Australia's swift rate cut saved the day for Asia but Europe still got its woes dragging on markets. So what's the outlook for us today in the U.S.? Looking for clues from index futures isn't much of a help. While the S&P500 futures point to a higher open NASDAQ futures go the other way around.
When I look at China ADRs, first thing hits me on my morning screen is this: Chinese companies listed in American exchanges are oversold to a point where they can only come back. Looking at moving averages, there is not a single Chinese stock that is above 20 day moving averages (DMA) not to mention above 50 DMA or 200 DMA.
My trading experience tells me that we may head for a surprise rally in one of these days. Possibly today but it may come a little later. And if so, the question is this: what stocks are going to take advantage most of such come back?
Looking at yesterday's trading landscape, Baidu.com (BIDU) is a contender. The stock opened 7.5% down in the morning and traded sideways just to start a 10%+ rally in the last hour to finish the day up 2.39%. See chart here. And all this when Baidu's nemesis, Google Inc (GOOD) lost $15.70 or 4.06%. I take it as a complement for Baidu and see upside potential.
Other NASDAQ names did well, too. A similar rally helped Shanda Entertainment (SNDA) and Sina Corp. (SINA) to end the day in a positive territory. For a comparative chart, click here.
Oil bounced back overnight, so don't expect Chinese oil giants to do well in the upcoming rebounce. Sinopec (SNP) and Petrochina (PTR), China's largest oil importers, reported a cut in October imports of gasoline.
China Life Insurance (LFC) is similar in trading to China's banks - and it's been banks that helped the Shanghai Composite to come off lows today. China's largest lender, Industrial and Commercial Bank of China (ICBC), showed resilience and closed up 2.21% higher - see chart. So if it comes to a rally, LFC will likely to participate.
And to conclude this analysis, please find the tope and bottom ten China stocks from yesterday's trading.
Top 10 - Bottom 10 - China ADR
6-Oct-08
4:00pm
Name
Symbol
Price
Change
Change%
BAIDU.COM
BIDU
$227.68
$5.31
2.39%
SINA CORPORATION
SINA
$32.21
$0.11
0.34%
SHANDA INTERACTIV
SNDA
$25.67
$0.02
0.08%
COGO GROUP
COGO
$4.42
$0.00
0.00%
I-CABLE COMM LTD
ICAB
$25.55
SINOVAC BIOTECH L
SVA
$2.00
CDC CORPORATION C
CHINA
$1.66
-$0.03
-1.78%
CHINA TECHFAITH W
CNTF
$0.95
-$0.05
-5.01%
NINETOWNS INTER A
NINE
$1.55
-$0.06
-3.73%
CHINA FINANCE ONL
JRJC
$10.84
-$0.08
-0.73%
SOHU.COM INC
SOHU
$52.39
-$2.65
-4.81%
TRINA SOLAR LTD A
TSL
$17.96
-$2.86
-13.74%
SUNTECH POWER HLD
STP
$30.58
-$2.89
-8.63%
HSBC HLDGS PLC AD
HBC
$78.29
-$3.08
-3.79%
LDK SOLAR CO ADR
LDK
$24.70
-$3.47
-12.32%
CHINA LIFE INS CO
LFC
$53.53
-6.09%
CHINA PETRO & CHE
SNP
$73.40
-$3.60
-4.68%
CHINA NETCOM GRP
CN
$38.23
-$4.87
-11.30%
PETROCHINA CO ADS
PTR
$91.00
-$6.00
-6.19%
CNOOC LTD ADS
CEO
$96.28
-$8.40
-8.02%
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Page rendered at 11/19/2008 6:45:42 PM (Eastern Standard Time, UTC-05:00)
Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.