Groupmark China Index

The Groupmark China Index moved sideways this week on low volume but the internals continue to deteriorate.  The three charts below show the index performance, the advance decline line, and the number of stocks trading above and below their averages.

The index gained almost no ground this week but the advanced decline moved into recent new low territory.  This increases the odds of a continued corrective phase.

This chart below measures the number of components trading above and below their moving averages and shows the number of companies trading below their 20 and 50 day averages increased this past week.

For further clarification of the above chart, it measures the stocks in the Groupmark China Index trading above or below their moving average.  The thickest green line measures stocks trading above their 200 day average.  The thinest green line measures stocks trading above their 20 day average and the green line in the middle measures stocks above their 50 day average.  The red lines measure stocks below their averages with the thickest being a 200 day average, thinest a 20 day average, and the middle a 50 day averages.

The Groupmark China Index blog and website were created for investors to monitor the general health of Chinese companies trading in the U.S.  Groupmark welcomes your comments.

admin GC Index, Indicators, Uncategorized

Over the 2 last weeks we have seen the number of stock that were trading above there 20, 50 and 200 day moving average drop significantly while the index holds close to recent highs.
Stocks above their

This could signal the start of a correction for the index.  What would confirm the potential correction is a turn in index below the 20 day average of 2239.47.
Here’s a list of stocks that recently turned below the 20 day average in the last 9 trading sessions.

BJGP BMP Sunstone Corp
ATAI ATA Inc
HRAY Hurray! Holding Co Ltd
XIN Xinyuan Real Estate Co Ltd
WH WSP Holdings Ltd
CEDU ChinaEdu Corporation
FEED AgFeed Industries Inc
SMI SMIC
GIGM Gigamedia Ltd
STV China Digital TV Hldg Co Ltd
ATV Acorn International Inc
CBAK China BAK Battery Inc
YTEC Yucheng Technologies Ltd
SOL Renesola Ltd
ASIA Asiainfo Holdings
GU Gushan Environment Energy Ltd
GSI General Steel Hldgs Inc
HQS HQ Sustainable Maritime Ind
VISN VisionChina Media Inc
CHINA CDC Corporation Class A
VIT Vanceinfo Technologies Inc
APWR A-Pwr Energy Generation Sys
GRO Agria Corp
CEU China Education Alliance Inc
LTON LinkTone Ltd. ADS
HOLI Hollysys Automation Tech
JASO JA Solar Holdings Co Ltd
YGE Yingli Energy Hoding Co Ltd
CHNR China Natural Resources Inc
JRJC China Finance Online Ltd ADS
CHME China Medicine Corp
RINO RINO International Corp
QXM QIAO XING Mobile Communication
WATG Wonder Auto Technology Inc
CSUN China Sunenergy Co Ltd
LDK LDK Solar Co Ltd
SOLF Solarfun Power Holdings Co Ltd
TSL Trina Solar Ltd
CEA China Eastern Airlines ADS

One of the leading groups in the index, Solar Power Companies seem to be correcting, as well as other energy related names.  Keep an eye of all the stocks moving above or below their averages here. http://alturl.com/aioc

admin Uncategorized

The Groupmark China Index financial sector rose 24.9% for the month leading all other sectors.  The leading stocks in the financial sector were CNinsure Inc ADS (CISG) and China Finance Online Ltd ADS (JRJC). The broader Groupmark China Index rose 7.66% for the same period.

CNinsure Inc. ADS (CISG) operates an independent insurance intermediary company in China. It provides insurance claim adjusting services, such as assessment, survey, authentication, and loss estimate to individuals and institutions.

For the three months ended 31 March 2009, CNinsure Inc’s revenues increased 58% to RMB215.9M. Net income increased 30% to RMB45.5M. Revenues reflect an increase in commissions & fees income and higher other service fees. Net income was partially offset by a rise in commissions & fees expenses, higher selling expenses, an increase in general & administrative expenses and a decrease in interest income.

China Finance Online Ltd Ads (JRJC) China Finance Online Co. Limited, provides online financial and listed company data and information in China. The company provides various services on a single information platform that integrates data and information from multiple sources with features and functions, such as data and information search, retrieval, delivery, storage, and analysis.

For the three months ended 31 March 2009, China Finance Online Co. Limited’s revenues increased 6% to $11.8M. Net loss totaled $128K vs. an income of $3.5M. Revenues reflect growth in subscription service fees from individual customers and institutional customers. Net loss was offset by an increase in general & administrative expenses, higher sales & marketing expenses and a rise in product development expenses.

The top 5 sectors in the Groupmark China Index for July are;

• Financial + 24.9%
• Conglomerates 22.3%
• Consumer Cyclical 18.1%
• Technology 13.3%
• Basic Material 12%

admin Uncategorized

The Groupmark China Index continues to push into new recovery high territory.  Volume picked up for the fourth day in a row to 97mm shares the highest volume in several weeks.  Also the list of stocks making 52 week highs increased to 9, another recovery high.

Stocks making new highs.

admin GC Index, Index Leaders caas, cfsg, china, cisg, jst, rino, tstc, vit, WATG

The Groupmark China Index closed at 2206.43 a new high for 2009.  It was accompanied with volume of more than 83 million shares, the heaviest volume in 4 weeks.  Another interesting development is in the new high data.  On Thursday and Friday we had more new highs than any other time this year.

Here are the charts of the stocks that made new highs this week.

Keep an eye on our list of new highs as well as stocks that are starting to move above their moving averages in order to get on board a potential new major trend.

admin GC Index, Index Leaders cfsg, cisg, New HIgh, rino, tstc, WATG

The Groupmark China Index declines this week in light volume.

The Groupmark China Index continues to outperform the Dow Jones Industrial and S&P 500 Index but still suffered losses this week. The index closed the week at 1673.45 – 119.29 or 7%.  It is still supported by its 50-day average that currently stands at 1646.

GMCI, volume and advance/decline line

Although this decline has been accompanied by lower than average volume, the deterioration in the components of the index has been severe.  An indicator that shows this is the number of stocks above and below their 20, 50 and 200 day moving averages. Last Friday, 59 components were trading below their 20-day averages while today there are 82. Last Friday, 27 components were trading below their 50-day average and now there are 58. Keep an eye on the lists of stocks that cross their moving averages in the left hand menu marked Above/Below xx MA this could foreshadow a larger trend.

Here is a graphical representation of the numbers of stocks above and below their moving averages.  The green lines are the number of components above their averages while the red is the number below their averages.  The thickest lines are 200 day averages, next 50 day average and thinnest lines represent the 20 day averages.

Number of components above and below 20, 50 and 200 day average

This deterioration is also reflected in the advance/decline line that has fallen sharply in the last week. (Shown in yellow below the Groupmark China Index)

Let’s see if the index can hold the 50-day average and give us a sign the correction is over next week.

admin GC Index, Indicators

The coming fourth of July holiday seems to be taking a toll on the volume this week.  Although the index has recovered back above it’s 20 day average the volume has been unimpressive.  The 50 day volume average has been steadily increasing since May 2009.  Tuesday and Wednesday this week have been the only two days in a row that the volume has been below the average.  Thursday is shaping up to be day number 3.

admin Uncategorized

Groupmark has launched the Groupmark China index website.  (www.groupmarkchinaindex.com)  This site was designed to help investors discover undervalued Chinese companies trading in the U.S.  The index is comprised of over 150 companies that generate most of their revenues inside China.  The index is calculated differently then most indexes.  Instead of a traditional market cap weighted index, this index is weighted to emphasize the fasting growing companies with the lowest the evaluation.  The new website has many technical indicators for investors to discover undervalued companies, including; percent gainers and losers, advancing and declining issues, as well as, companies that start to trade above, or below, their 20, 50 and 200 day moving averages.

Please give us feed back on the site.

admin Uncategorized

The Groupmark China Index continues into new high for this bullish phase.   This move negated the concern of the two reversal days.  In our last post we talked about support at 1444.56, which was not tested before the index went into new high territory.

Another positive indicator was the advance decline line pushing into new highs confirming the new high in the index.

Our index also is outperforming the S&P 500.

All our indicators will be available shortly on GroupmarkChinaIndex.com

admin Uncategorized

Here’s a closer look at the advance decline line.  (For some it may be a bit too close)

As the market was moving higher in April it was accompanied with more of Groupmark China Index components advancing and fewer declining on pull backs  (see A,B,C, and 1, 2, 3,4).  This was again confirmed as we pushed through our 200 day moving average (see D).  More recently on the last pull back to the 200 day (that supported) it was accompanied with a sharp rise in declining stocks (see 6).  And now finally with this last move into new highs the number of advancing issues did not exceed its previous peak (see D, E).  This could be a sign the index will at least consolidate, and at worst begin a correction.

As Groupmark continues to be bullish on the long-term outlook of the Chinese economy and ultimately that will translate into the Chinese companies continuing to outperform most others in the world, we don’t recommend the buy and hold strategy. Too often small corrections turn into major routes giving up all the hard earned profits. Tighter stops, trimming position or hedging is in order when technical indicators weaken.

admin GC Index