The China Investment Theme is still a compelling one. Last year I’ve traded FEED – AgFeed Industries because of the story stock potential. I wrote about it in China Agriculture. In the meantime lots of new stocks have become household names for day traders and momentum traders. You can access the CHN – China Fund and the $SSEC Shanghai Index charts on my public list.
The CHN – China Fund printed a new all time high a few days ago. As a general rule a new all time high has to be considered a bullish sign displaying great strength. Hence the decision to add more Chinese stocks to my public list. For a list of Chinese ADR ticker symbols trading on American exchanges review my Halter USX China Index Components posting. For those who prefer less aggressive stocks CAST – ChinaCast Education would be a good alternative. The chart looks good and is setting up for a breakout to the upside.
Here is the CHN – China Fund chart showing the strength of Chinese stocks:
Up-to-date CHN – China Fund chart on my public list.
What makes the China Agriculture and Food investment theme interesting is the fact it is a commodity and resources related investment. If we are to believe bull market cycle analysis the commodities and resource bull market has another 5 – 8 years to run. Probably the most visible stock right now is SEED – Origin Agritech. I think the stock has the potential to develop into the ‘Chinese Monsanto’. In any case the chart is setting up for a move towards the 20$ area.
Here’s a list of the companies that are part of my China Agri / Food Sector Overview:
- SEED – Origin Agritech
- CAGC – China Agritech
- CGA – China Green Agriculture
- YONG – Yongye International
- FEED – AgFeed industries
- HOGS – Zhongpin
Our greatest glory is not in never failing, but in rising every time we fall.
– Confucius –
Have a great evening!
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