Looking ahead 3SBio Inc. (NASDAQ:SSRX) is going to report today. But most of the important earnings will come next week except for Yingli Solar (NYSE:YGE), another solar play reporting on Friday.
As the overbought chart testifies, there isn't much change within the China stock universe from a technical point of view. CAAS, WX and YZC are on the top three spot, all in the danger zone to a certain degree. What's interesting at this point is Ctrip.com (NASDAQ:CTRP), a Chinese online travel agent, that reported strong numbers after the close yesterday. The stock is up over 10% in the pre-market trading on top of the 20% gain registered in the last five trading days. While Ctrip.com (NASDAQ:CTRP) isn't overbought in the chart just yet - that chart uses closing prices not pre-market ones - the ten percent jump by the open suggests that most of the gains are already incorporated into Ctrip's stock price. This in turn translates to DON'T BUY the stock after the open, it's going to trade lower throughout the trading day! My advice to those who have CTRP right now is to SHORT Ctrip.com (NASDAQ:CTRP) right at the open and buy it back at the end of the trading day.
Another stock of interest for today s Baidu.com (NASDAQ:BIDU). The stock was trading sideways yesterday ending the day 0.56% higher, but according to the overbought monitor there is more upside left for Baidu.com (NASDAQ:BIDU). Despite a strong 14% run in the last five days, Baidu.com (NASDAQ:BIDU) is far from overbought. Considering that index futures point to a lower open, don't expect much from Baidu.com (NASDAQ:BIDU) today.
that much higher.
AsiaInfo Holdings (NASDAQ:ASIA) has been strong lately and as the following chart testifies, there is more upside left for the stock. Despite a 16% run in the last five days, AsiaInfo Holdings (NASDAQ:ASIA) is far from overbought.
Most overbought China stock list
On the oversold end of the China stock spectrum, The9 Ltd. (NASDAQ:NCTY) and China Digital TV Holdings (NADAQ:STV) are a stock of interest. The9 Ltd. has been hurt by the loss of WoW and then by the lack of licence to operate it any longer. Don't expect much from this stock in the near term.
China Digital TV Holdings (NASDAQ:STV) fell on fndamentals, a strong force that is hard to fight against. As the following oversold monitor suggests, there is more downside left for China Digital TV Holdings (NASDAQ:STV) in the short run.
Most oversold China stock list
Overbought A technical condition that occurs when prices are considered too high and susceptible to a decline. Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp advance from $15 to $30 in 2 weeks might lead a technician to believe that a security is overbought. Or, a security is sometimes considered overbought when the stock is trading out of its trading envelope and is approaching the theoretical high. It is important to keep in mind that overbought is not necessarily the same as being bearish. It merely infers that the stock has risen too far too fast and might be due for a pullback.
Oversold A technical condition that occurs when prices are considered too low and ripe for a rally. Oversold conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp decline from $30 to $15 in 2 weeks might lead a technician to believe that a security is oversold. Or, a security is sometimes considered oversold when the stock is trading below its trading envelope and is approaching theoretical lows. It is important to keep in mind that oversold is not necessarily the same as being bullish. It merely infers that the security has fallen too far too fast and may be due for a reaction rally.