July 19, 2011 (Chinavestor) Chinese stocks were looking for direction in Asia on Tuesday. The Hang Seng Index (INDEXHANGSENG:.HSI) advanced 97.7 points or 0.4% while the Shanghai Composite Index (SHA:000001) actually fell 19.7 points or 0.7%. Investors in Hong Kong took merit ahead of U.S. housing stats but good news in the global arena is bad for Chinese inventors on the Mainland. Those Chinese investors fear that more monetary tightening will continue to limit upside for stocks.
Index futures point to a higher opening after a broad decline in the DJIA a day before . All but one component of the index fell on Monday, dragging down Chinese ETFs with it. While large caps fell a mere 0.3%, small cap proxy Guggenheim China Small Cap ETF (NYSE:HAO) dived 1.5%!
China Sky One Dical (NASDAQ:CSKI) was overbought and fell hard on Monday, making it the worst performing Chinese ADR on Monday. But things are about to change according to the overbought/oversold monitor, published by Chinavestor each morning.