SINA Corp (NASDAQ:SINA), Sohu.com Inc (NASDAQ:SOHU) and Baidu Inc (NASDAQ:BIDU) areall taking another pounding today. Chinese stocks are viewed as high risk and high risk is notsomething investors are looking for at this time. These stocks have fallen drastically off their 52 weekhighs. Below are the price levels for an entry on the long side. These levels are near term swingtrading levels.
1. SINA: This Chinese play will have support at $45.85. Expect a multi-day bounce off that levelbefore another move down to $41.35.
2. SOHU: Another Chinese stock taking a beating. This will have a major bounce at the $49.85 level.After approximately a one week bounce, look for it to head to $44.65 level for a longer, more robustbounce.
3. BIDU: Perhaps the most well known Chinese name (until the Alibaba IPO), this stock will have suppot at $134.75, then $125.00, each a multi day bounce before heading to its final resting place of $113.50 which is a major gap fill.
These Chinese stocks are fighting a very scary Chinese economic meltdown in its early stages. The stocks are finally starting to reflect some of the risk associated with this event.
Gareth Soloway
InTheMoneyStocks.com
