But the rally for airliners may have come to an end as oil prices bounced back up. Short term outlook is thus uncertain for China eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH).
Investors were snapping up shares of liquid, large cap NASDAQ listed Chinese companies. Sina Corp. (NASDAQ:SINA) closed just below $120, close to the all time high. Baidu.com Inc. (NASDAQ:BIDU) enjoyed strong money flows as well. Shares of the company at $145 don't seem to be overbought, similarly to Sina Corp. (NASDAQ:SINA).
51job inc. (NASDAQ:JOBS) and Sohu.com Inc. (NASDAQ:SOHU) rode on the back of market sentiment as well - yet are far from overbought.
China Unicom (NYSE:CHU) is the most overbought large cap NYSE stock, making it susceptible to profit taking. WSP Holding (NYSE:WH) remains overbought albeit small volume makes technical indicators less accurate.
Xinyuan Real Estate Co. (NYSE:XIN) is the most oversold China play today. Nam Tai Electronics (NYSE:NTE) is trading at theoretical lows as well. Both stocks might pop any minute, the oversold indicator suggests.
General Steel (NYSE:GSI) isn't out of the woods yet, according to the oversold chart below.
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.