Dec. 30, 2009 (Chinavestor) I don't take credit for the pop of China Bak Battery Inc. (NASDAQ:CBAK) on Tuesday but one thing is clear: oversold China stocks pop up randomly. We just wrote right in the first paragraph yesterday that "Hurray Holdings (NASDAQ:HRAY), Nam Tai Electronics (NYSE:NTE), China Bak Battery (NASDAQ:CBAK), and Tongxin Int. (NASDAQ:TXIC) are oversold, low volume China stocks that are ready to pop up any minute." Before you know it, CBAK jumped a staggering 63.23%! It well might have been any of the other stocks that the oversold indicator picked up. We have been very successful in identifying stocks right before the pop up in 2009 - as the +134.4% YTD return of the TOAST List testifies.
Looking forward, we have Zhongpin Inc. (NASAQ:HOGS) that looks promising on the overbought monitor right below. A sharp advance from $14.5 to $15.8 in 2 days might lead a technician to believe that a security is overbought but the strong underlying volume suggests there might be more left to the upside. A correction today is a possibility - given that index futures point to a lower open - but Dec 31 might be another good day for HOGS.
Most overbought China stock list
Looking at the oversold end of the China ADR universe we see China BAK Battery (NASDAQ:CBAK) gone from the list. The sudden drop of Acorn International (NYSE:ATV) is recognized but more weakness is ahead, according to the oversold monitor. For the rest of the China stock unicerse, see chart below.
Most oversold China stock list