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Registered User
Joined: 11/8/2006
Posts: 32
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CHNR --> went up cause of its China relation.
Even the company does not know why the stock is UP so high.
I think if we SHORT it for a couple of weeks, it should give us about 4-6 points return easily.
* The public interest/HYPE is just about gone.
* Its VOLUME is wayy DOWN.
so why is it still up where it is?
why are people buying it and why aren't people selling this off like hot cakes?
what do you think?
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Registered User
Joined: 12/21/2004
Posts: 902
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My take:
I think there's a definite interest in China stocks right now because
1) the uncertainty of the US market in the near future - which sectors will be affected next by the whole finance/mortgage mess?
2) the Chinese economic boom fueled by the economic takeoff since 2003 and the anticipation of the Olympics next summer - whatever happens, the Chinese govt won't allow the market or the economy to crash before then - after that, maybe the deluge... but for now, Chinese stocks seem to be a much more credible alternative to US stocks. They represent growth, just starting out - US is maybe at a peak after 5 years?
3) the huge run-up of the Shanghai/Hong Kong exchanges this past year. For many Chinese people, the opportunity to invest in the market is akin to what happened here in the 1920s. Sure it may (will?) end badly, but until then, huge demand in China itself for stocks means these puppies are going to keep skyrocketing until something happens. And of course, the normal sentiment is "of course I'll get out before *that* happens" - but it won't happen before the Olympics.
4) connected to 3) - high volitility means the promise of big bucks. The day that CHNR made it's big 75% one day move, I put in a limit order at $18.00 when the stock was at like $18.25 and already up almost 10% for the day. Of course it never came back to fill my order, and it closed like somewhere in the 30s. How often do US stocks act like that, and CHNR isn't the only one - several of them have had rockstar days in the past month. So it's taking a breather now - as long as it doesn't go back down to where it was, would *you* sell and then have the chance that the next day it will wake back up and take off again for another 75%? And that big day was only 2 weeks ago - not *too* much time for a consolidation and another move - especially when other Chinese stocks still have life in them. Would you be willing to go short in a big way on such an explosive stock?
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Registered User
Joined: 12/7/2004
Posts: 393
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Check out FNI if your interested in a China/India ETF.
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Registered User
Joined: 4/18/2005
Posts: 4,090
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don't forget that this is a comodity also and there is allot of press speculation about the world scrambling for natural recources.
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Registered User
Joined: 11/8/2006
Posts: 32
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Well. I am in it now.
Got 200 @ 35.35 and 200 more @ 35.00 -- selling short.
I guess I will ride it till 32 or 33.
The company is involved in mining of zinc, iron and other minerals.
the volume is down.
October has not ended yet, I am sure a couple of down days in the market will bring this down to 32 or 33, by next week.
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Registered User
Joined: 11/8/2006
Posts: 32
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with CHNR, I got out at 33.00.
that was a nice 1 day play. I will short it again if goes up till $34.00 today. I got out too soon. o well!
another good short is STV.
tomorrow seems like another down day to me....I will SHORT STV if it come up to 39.80.
I think it has the potential to go down till 37.00 in next 2 days.
Varun
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Registered User
Joined: 11/8/2006
Posts: 32
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got into Shorting STV @ 39.69 - 200 shares.
lets see what happens tomorrow.
its for a swing trade....may be a day or so if it goes down. looking to make 2 points off of it.
Varun
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Registered User
Joined: 11/8/2006
Posts: 32
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got into another 200 shares of STV @ 38.80
and now the stock just closed at 37.62.
I am still in it with 400, I think it will go down more tomorrow.....targetting around 36.80 or lower...who knows.
lets see what STV brings me tomorrow.
Varun
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Registered User
Joined: 11/8/2006
Posts: 32
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Yesterday it went up almost 2 points and came back DOWN even harder today!!!
Too bad, I panicked a little and made little money Vs. more than 2 points worth I could have.
o well....I will be more patient next time.
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Registered User
Joined: 11/8/2006
Posts: 32
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Alright I Shorted CHNR again at 26.00, still in it with 800 shares.
let see how low it can GO!
there was NO reason for it to be up so it should go down to its normal 12-16 range in the next 3 weeks.
it should hit 20-21 by Monday next week I think.
lets see!!!
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Registered User
Joined: 11/8/2006
Posts: 32
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CHNR:
wow, this has been so nice.
I can say, I called it.
yes, CHNR is at 21.25 or something today.....wow.
Looking forward to it going down to 12-16 range within next 3 weeks.
I DID make good money off of it.
STV:
Along with CHNR, I am also shorting STV.
This one should go down till 27-28 in next week or two.
so there is plenty of room.....I already shorted STV a couple of times and made a few hundred dollars.
sweeet!!!
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Registered User
Joined: 11/8/2006
Posts: 32
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Alright, I am back into SHORTING CHNR -- 1000 @ 20.72
I will leave CHNR at 15.30 something -- thats a handsome payoff!!!!
SHORTING STV -- 500 @ 32.00 -- should go down till 30.25 atleast. I will leave it at 30.25.
SHORTING = A LOT OF FUN (In this kind of a market)
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