March 28, 2014 (Chinavestor) Looking at moves of major indices don't give back what was happening in the background for the lass two trading days. The Dow Jones Industrial Average and the NASDAQ surrendered all early morning gains by the close on Friday. It may go down the history as a no event day. Yet, Chinese stocks had two very opposite days that can teach lessons to the intelligent investor.
Today's big movers include NetEase Inc. (NASDAQ:NTES) and SouFun Holdings (NYSE:SFUN) to the upside. On the other hand the bottom fell off of CNOOC Ltd. (NYSE:CEO) as China's offshore oil specialist plunged over $5.0. Sinopec Shanghai Petrochemcial (NYSE:SHI) and Sinopec (NYSE:SNP) are also among the biggest losers of the day on Friday. See following chart for details.
This is why Friday was a complete opposite of Thursday.CNOOC Ltd. (NYSE:CEO), a stock that tumbled on Friday was the single best Chinese play just one day before. Sinopec (NYSE:SNP), a weak play on Friday, advanced the second most among major Chinese listings on the NYSE.
How about yesterday's losers? Youku Tudou (NYSE:YOKU) fell $1.77, the most among major NYSE listings. NetEase Inc. (NYSE:NTES) followed YOKU next, the very same company that rose the most on Friday.
Ctrip.com (NASDAQ:CTRP) advanced 3.28% on Friday after a significant decline a day before. BIDU fell hard and spent most of the day in the black the next day.
See Chinese stocks on the move a day before.
Finally, there is 500.com Ltd. (NYSE:WBAI), a Chinese online lottery site. The stock tumbled a staggering 17.8% in two days before today's advance of 4.67%. Again, complete opposite days. And what did major indices tell about these dramatic changes? Not much. The Dow was slightly in the red on Thursday and recorded some advance on Friday. Nothing indicative.
Three days trading of 500.com Ltd., March 26-28, 2014