June 16, 2010 (Chinavestor) With both liquid Asian markets for Chinese stocks closed for the day, signals for China ADR trading is limited before the open on Wednesday. Index futures point to a lower opening after a substantial rally on Tuesday. Each and every component of the DJIA advanced, sending the index 2.1% higher.
Chinese ADRs have rallied along U.S. equities moving away from the oversold position. While there were just a handful of China ADrs trading above their 20-DMA and 50-DMA a week ago, that has changed dramatically. Despite a significant improvement in short-term momentum indicators, Chinese stocks are still lagging behind measured by the relative strength indicator (RSI) and the 200-DMA.