Jan. 6, 2010 (Chinavestor) Overbought stocks are in danger when market sentiment turns south. Aluminum Corp. of China (NYSE:ACH), The9 Ltd. (NASDQ:NCTY) and Harbin Electric (NASDAQ:HRBN) are the most vulnerable stocks on Wednesday but investors have to exercise caution with NetEase.com Inc. (NASDAQ:NTES), AgFeed Industries (NASDAQ:FEED) and Advanced Battery (NASDAQ:ABAT).
But the devil is always in the details and the overbought monitor alone will not be 100%accurate. American Oriental (NYSE:AOB), the most overbought stock of the week until today, peaked out on Tuesday, as predicted. But Aluminum Corp. of China (NYSE:ACH) is the world's third largest aluminum producer that gained strength on the back of strong commodity prices - so don't expect ACH to collapse anytime soon. The9 Ltd. (NASDAQ:NCTY) and Harbin Electric (NASDAQ:HRBN) are smaller NASDAQ listed China stocks, expect a pullback on Wednesday.
Advanced Battery (NASDAQ:ABAT) is different again,strong underlying volume on Tuesday suggests the party is not over yet. Mindray Medical (NYSE:MR) is another value play.
Most overbought Chinese stocks
There isn't much actin taking plcae on the oversold end of the China stock universe just yet. But wait, today is going to show what China plays are weak and subject to additional weakness - look for the oversold monitor tomorrow morning.
Most oversold Chinese stocks