Watch China.
I have beat this drum in the past but now that the SHCOMP
(Shanghai Composite Index) closed below 2000 for the first time since early
2009 it has to be on traders radar. Stocks to watch include, but are not
limited to, SINA, SOHU, BIDU, RENN, DANG, etc.
If the Index doesnt recover the 2000 level in the next few
days then look for the slide to continue all the way down to its long term
bullish trendline in the mid 1600's. Additionally, each time the oscillator turns down from a low position the index comes under pressure (see red circles)...and that is happening now. With that, additional pressure on many
Chinese stocks, including the ones above should be coming.
Remember the SINA post here from November 2nd? Although there is always the possibility of a violent bounce in
these Chinese names, SINA included, that thought on where this stock is
headed still stands, and applies to the
others as well.
As stated previously, play from the short side until the
signs tell you otherwise!
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