Stock Ideas arrow Investing Ideas arrow Chinese stocks are on an amazing run.
Rating
Click for Help

Market Watch

By Chris Johnson
We've commented on the softness in the semiconductor sector, which has been headed south while the rest of the market has rallied.  With seasonal electronic sales about to get a boost from the holiday shopping season, it's strange to see the semiconductor group in its current weakened state.
More...
 

Most Popular

Login Form






Lost Password?
No account yet? Register
Chinese stocks are on an amazing run.
User Rating: / 0
PoorBest 
Tuesday, 25 September 2007
The Shanghai Stock Exchange is up almost 200% over the past year. And it's going parabolic. As a friend of mine said recently, "Chinese stocks are just like the food. You buy one stock, and 20 minutes later you want to buy another."
VIX Volatility Index

But unlike a bad serving of moo shoo pork, which might cause a little indigestion, buying into this market after such a dramatic move higher could be terminal.
There's nothing logical about this type of move... It's all about momentum.

Logic and momentum often follow the same path. Sometimes, though, momentum gets too far ahead. The results are almost always disastrous... But it takes a while to play out.

Think about Internet stocks back in 1999. The disconnect between logic and momentum lasted forever. Investors rode stocks like JDS Uniphase, Sycamore Networks, and Commerce One to dizzying heights.

Fortunes were made on the way up – just as fortunes are being made in China right now. But even bigger fortunes were lost when the Internet bubble popped. And the same fate awaits those who stay in China too long.
A Look Back at Employment and Forward to Earnings

By Christian Hill The economic calendar is rather uneventful this week, so I wanted to focus on the big news from last week, namely the employment figures from last Friday. The non-farm payrolls...
+ Full Story

Trading to Win in Volatile Markets with One Simple Rule

By Chris Johnson Dear Reader, You read IDE on a daily basis to do one thing - help you make money, right?  Well, today I’m going to review one of the simpler concepts to help you become a...
+ Full Story


Chinese stocks haven't yet reached the level of popularity that we saw with Internet stocks in 1999. So there's probably a bit more upside to go, and it's still too early to short sell the sector. But we're getting really, really close.

My guess is that by January 2008 – along with toys, dog food, and jogging shoes – the next big stock market decline will be made in China.

Best regards and good trading,

Jeff Clark
Source : Growth Stock Wire

  • We endeavor to decipher analysis of this Teaser/News Letter to distinguish the thoughts of Authors/Editors.

  • Please post your Review/Comments, your rating helps other users gauge the value of an article ...

  • Was this service a Ripoff ? Click Here To Post Your Ripoff Story !


Bookmark and Share



RSS comments

Write review Your rating helps people guage value of an article
Name:
E-mail
BBCode:Web AddressEmail AddressBold TextItalic TextUnderlined TextQuoteCodeOpen ListList ItemClose List
Review:

I wish to be contacted by email regarding additional comments
Sorry but! We have to make sure that you are not a bot Please solve this simple math before you submit: 
WT6         QL3      
  U    T    T A   FCR
  D   7BP   5SN      
  Y    8      B   916
  M         SR1

 
< Prev   Next >
[ Back ]