Groupmark China Index

Here is a look at the top performing stocks since the March lows in the index.

admin Index Leaders ADY, APWR, CANL, CSIQ, FEED, SOLF, SUTR, TSL, WATG, YGE

The Groupmark China Index 10 most active components

admin Index Leaders AOB, CSIQ, FEED, FMCN, JASO, LDK, SOL, SOLF, TSL, YGE

The Groupmark China Index closed lower yesterday after trading in new high ground for this bullish phase. This pattern is referred to as a key reversal day. Key reversal days can be a top of a bullish market phase. What makes this pattern more important is the heavy volume that accompanied the potentially bearish day.

Another sign that this rally may be ready to correct is the advance decline line flattening out while the index pushed into new high territory. This signifies less stocks moving higher with the general trend of the index and could be a sign of weakening internals.

Key trading levels will confirm this pattern, trading below 1555.40 on the index will confirm the reversal day; also the 20 and 200 day moving averages are 1444.56 and 1359.85 these should be support for a healthy market, a close significantly below could be a confirmation of a corrective phase.

admin GC Index

The Groupmark China Index closed today above its 200 day moving average for the first time since June 9, 2008.  The index added 114.03 points to close at 1496.64 a 7 Month high.

The index advanced with heavy volume of 74 million shares almost 2 times the average daily volume.  One industry that continues to lead is solar with Trina Solar Ltd (TSL) closing at 18.07 up 2.17 (52 week range 53 - 5.61).  Canadian Solar (CSIQ) closed at 8.95 up 2.09 (52 week range 51 - 3) and JA Solar (JASO) closed at 4.06 up .56 (52 week range 26 - 1.55).

Other top performing stocks in our index listed below.

admin GC Index, Index Leaders CSIQ, JASO, TSL

The Groupmark China Index closed a quiet week with a good advance.  The index closed at the highest level in nearly 12 weeks ending at 1243.70.  The index stands nicely above its 20 and 50 day moving averages and both averages have turned higher confirming the new trend.  Also confirming the move higher is the advance decline line.

In another confirmation of the uptrend we now have the majority of stocks in the index (86) trading above their 50 day moving average.

Three of the best performing companies in our index are Longtop Financial Technology Limited (LFT), AsiaInfo Holdings, Inc (ASIA) and China GrenTech Corp Ltd.   Longtop Financial Technology provides information technology services to the financial serves industry in China.  Asia Holdings provides telecommunications software solutions and information technology security products to service providers in China.  And GrenTech Corp. manufactures wireless coverage products and services to the telecommunication operators in China.  These types of companies will benefit from growth of the domestic Chinese economy.

Listed in the chart below are other companies that have recently crossed above their 50 day moving average and offer a beginning place to look for new investment opportunities in Chinese companies that trade in the U.S.  markets.

admin GC Index

In a recent article posted on Yahoo finance several economist suggest that the recovery in China is already underway.  As Groupmark has stated, the recovery that China is leading will benefit the companies doing business in that market as the government refocuses their recovery on the domestic market.

http://finance.yahoo.com/news/World-Bank-Chinas-recovery-apf-14865887.html

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Barron’s in a recent blog post outlines what some analysts are saying about the Chinese solar power companies.

http://blogs.barrons.com/techtraderdaily/2009/04/01/china-solar-stocks-details-emerge-on-subsidy-plans/?mod=yahoobarrons

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The Groupmark China Index has recently been lead by the Solar Power stocks.  7 out of the 10 most active stocks are solar power related.  The Index is consolidating above the 50 day moving average.  Based on the internals today (2 to 1 in favor of the advancers) the break out be to higher levels.  A confirmed break out above 1193 with volume should confirm the uptrend.

admin Index Leaders

The Groupmark China Index was created to bring attention to the many small and mid-sized Chinese operated companies that are listed in the United States. Many of these companies are trading at levels far below their U.S. peers and may offer an opportunity to invest.

The Groupmark China Index is constructed to more heavily weight stocks that are fundamentally “cheaper” and are growing revenues and earnings the fastest. Unlike many other market-cap weighted indexes that heavily weight the “wall street darlings” we strive to uncover the companies that are growing their businesses.

Among the heaviest weighted stocks in the index are;

Groupmark is creating the Groupmark China Index web page that will not just keep track of the index components, but will offer technical information that will help pinpoint investment opportunity. For example;

Stocks that are trading with greater then average volume;

Stocks that recently crossed above their 50-day moving average;

Stocks with the largest percentage gain;

Groupmark plans to calculate additional indicators for the financial community to reference.  This data may identify undervalued opportunities hidden within the fastest growing economy in the world, China!

Nicholas Thompson

admin GC Index