Chinese stocks are on Fire before the bell on Monday. The Shanghai Composite Index <.SSEC> advanced 62.61 points or 1.86% to 3,435.21, up 100% for 2009. The Hang Seng Composite broke through 20,000 for the first time in 2009 on Monday. Strong earnings and earnings expectations lifted Hong Kong's most used index 268.83 points or 1.35% to 20,251.62 points. Number of stocks that advanced among the 44 member Hang Seng Index <.HSI> outnumbered those that fell ten to one.
Index futures point to a midex open with a slightly negative bias on Monday. The number of overbought Chinese stocks are on the rise and thus be careful not to touch those hot stocks that are subject to correction. Huaneng Power International (0902.HK) (600011.SS) (HNP), HSBC Holdings Plc (HBC)(0005.HK) are overbought but for the complete list of stocks, please look up the Overbought indicator of the day.