Chinese ADR's are weaker than the overall market today. This is mainly due to poor economic data from China over the weekend. It showed a current solid slowdown is definitely taking place, larger than most had anticipated. Baidu.com, Inc. (ADR)(NASDAQ:BIDU) is trading at $112.23, -2.75 (-2.39%) while SINA Corporation (USA)(NASDAQ:SINA) is trading at $49.64, -2.17 (-4.19%).
In general, the daily charts show these Chinese stocks will head low into the second half of 2012. The key level to follow on BIDU is $101.00 and $94.00. Each should have a big bounce and it is likely that the $94.00 level will have a sustained major bounce at the end of this year. SINA will have support at $40.00 and major support at $32.00. Like BIDU, the $32.00 level will be a longer hold for a larger gain.
China is the major trading partner with Europe. The European woes have hit China hard and will continue to be a drag on their economy. Let these Chinese stocks continue to float lower in the short term until major supports are hit.
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Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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