March 5, 2014 (Chinavestor) This is what a 200 points Dow rally translated to on Tuesday: SouFun Holdings (NYSE:SFUN) surged $4.85, by far the most among NYSE and NASDAQ Chinese listings. The advance of Baidu Inc. (NASDAQ:BIDU) was instrumental setting the technology sector on fire. Home Inns & Hotels Management (NASDAQ:HMIN), Trina Solar (NYSE:TSL) and 51 job Inc. (NASDAQ:JOBS) all advanced. So did the Chinese oil sector: Sinopec (NYSE:SNP), CNOOC Ltd. (NYSE:CEO) and Petrochina (NYSE:PTR) outperformed the rest of the market.
The following chart depicts advances of the largest Chinese stocks. Size of the bubble represents market capitalization.
Good news for Soufun Holdings (NYSE:SFUN) investors is that the stock is not overbought yet! Instead, downside risk exceeds upside potential for Sohu.com Inc. (NASDAQ:SOHU) and E Commerce China (NASDAQ:DANG). These two NASDAQ listings advanced unusually sharp and are ready to take a breather.
Trina Solar (NYSE:TSL) is also among the 25 most ovebought Chinese listings. But it doesn't mean TSL is ovebought. Far from it. Trina Solar (NYSE:TSL) is just trading slightly above its trading envelope.
Baidu Inc. (NASDAQ:BIDU) is not on the following screen altogether. This is good news for BIDU going forward.
Chinese education stocks, XUE and EDU, continue to dominate the oversold China stock screen. China Telecom (NYSE:CHA) is far from theoretical lows right now, just like NetEase Inc. (NASDAQ:NTES). Both NTES and CHA are vulnerable going forward, according to the oversold China stock chart.