Trading Chinese stocks

Now I've the software to analyze and trade Chinese stocks, I'll look at the possibility to scan and trade Chinese stocks at night.

This is the place I got the software. My brother and friends have accounts with them.

http://www.bhzq.com/Service/default.aspx?skins=softdownload

Most Chinese stocks are NOT allowed to daytrade. If you bought it today, you have to hold it overnight or several days, you cannot sell it right away, they called it 0+1 or 0+7 stocks. However, trading stock warrants are not subjected to this restriction. I might look at the stock warrants to trade, there are a handful of stock warrants in Chinese stock market, not many. No stock options.


Another strange rule is they would stop trading a stock if it drops or gains too much for a day (10 or 12%).

Even though the Chinese stock market was hot, I still think the U.S. market is where to trade. You got 7:1 $ to Yuan Exchange ratio, for every dollar you gain, you could exchange it for 7+ Yuan, you can also trade stocks in margin, that's another leverage. No margin trading in China.

Blogs in China

I cannot access to this or other blogs from China. The Chinese government has blocked the blogs.

Back from my trip

Had a very nice trip to China. I hope everyone is well.

Kids will stay at home for the rest of the week, I'll take care of them first. Make a few trades here and there.

Some charts I scanned

I don't have time to play them, some charts popped up the scanner:

http://www3.stockfetcher.com/sfchart/1042027196.png
http://www3.stockfetcher.com/sfchart/457700024.png
http://www3.stockfetcher.com/sfchart/1891195691.png
http://www3.stockfetcher.com/sfchart/830649706.png
http://www3.stockfetcher.com/sfchart/1472624407.png

Preparing my trip

I've been preparing my trip to China. We'll leave at 4:30 AM tomorrow morning, we'll be back on 06-26-2007.

I wish everyone have a great summer!

SWNE 0.20

SWNE is a speical reverse split round up play. These special round up reverse split plays can be extremely profitable. The last one was NWNO about one week ago, these bought the shares before the revesse split turned their little gamble from $11 to $1500 in a few days.

"SWNE 1-500 R/S No shareholder will be reduced below 500 shares. N/C to Mariner's Choice International Inc (MCII). "

Bought 500 shares with $100, after the resverse split, because of this special treatment, I SHOULD receive 500 new shares, but the price would be around $70 based on Friday's close. 500 shares x $70 = $35,000. In the worst case, even I sell 500 shares at $1, still make $400 profit. I will take it, worth the $100 gamble. In fact, if you just bought $1 or 1 share, you should still receive 500 new shares, that's a pure lottery ticket play.

Remember, this is a special niche play, not applies to all R/S, you cannot buy it after the ex-date (or after the split), it only applies to the R/S stocks have the round up clause. Read the board - Reverse Split Round up Share Plays:

http://www.investorshub.com/boards/board.asp?board_id=9426

SWNE discussions:

http://www.investorshub.com/boards/board.asp?board_id=9405

DAY: 06-01-2007

Time flies fast, a new month has started. Time to pay bills again. I feel I just need one bill-free month to catch up, I should be all set on my account. Unfortnately, I have to face the reality, I have to take one month off to China. It is so funny, sometimes, things always turn aganist you. Maybe I should take time to relax and recharge energy, not a bad thing.

Some charts three: 06-01-2007

Stocks just traded above the ascending triangle:

FULT:



COCO:



AVCI:

Some charts two: 06-01-2007

AGXM: Very narrow trading range, maybe someday this one will break the resistence on volume.




KENS:

Some charts

I played a little more with the new stockfetcher 2.0 beta scanner and charts tonight. Very nice.

Tomorrow is Friday, have to be careful, cannot take too many positions to the afternoon or the weekend. I will consider to reduce GZGT too.


BTEM - possible double bottom, feel sorry for these bought at $2s, ouch!




ZLUE: maybe going to $2s, accumulation pattern for the past three days.



CUP - tank and possible deadcat bounce:



PRM: possible ascending triangle:



COHG, possible a cup formation, watch for volume:

EICU

I mentione EICU two weeks ago at $8, now we see why there were so many June $10 calls, it is right at $10.

**********************

05-16-07 08:12 PM

EICU popped up huge on earnings about two weeks ago. Now the stock price is coming down to the pre-earnings level at $8. The volume is light, but if you look at its June $10 calls, huge open interest (11,558) compare to May's $10 call (10), maybe people are expecting something for the month of June. It popped up to my scanner today, this is a stock to watch.

http://finance.yahoo.com/q/op?s=EICU&m=2007-06
http://finance.yahoo.com/q/op?s=EICU&m=2007-05

EICU charts:
http://charts.dacharts.com/2007-05-16/smallkap56.png

GZGT

GZGT 2.20 again with monster volume over 3.5 mil shares traded today. At this rate, I think it could go to $2.75-$3 before I go to China on next Wed. I hope the best and wish no hard shakes before I leave. I added 3K more yesterday, I've put 50% of my capital into the stock, really don't need to trade anything else for now.

Tracking GZGT:

http://charts.dacharts.com/2007-05-31/small135.png


About ten days ago, some ET fools bashed me right after I said this below and they made me left ET, what a bunch of morons, all they missed is a very safe and confident trading opportunity they would have ever dreamed of. I am in and follow my trading plan, eventually will lock in the profit, turn knowledge into power!

********************

PennyTrader 05-18-07 11:41 AM

Here is a short-term (60-90 days) play for me, this is a new microcap IPO: GZGT at 1.86 x 1.87. This is not TUBR/ESRG type - not one week play, it takes longer time to move.

I am getting 2K shares at $1.87. I believe this stock won't trade lower than $1.75 in the short-term because its starting price was 1.75 about two days ago, it should see $2-3 before see the low again. This one will be very very slow like a turtle, might go up 0.01 or 0.05 a day, then a quick shake could go down 0.20 or more n minutes, this is very typical, this is not a daily scalping play, just buy, hold, and pray for me.

But I must make a disclaimer - I am not suggesting you to buy it, because this one is just starting, it doesn't have 1 million shares traded yet, few knows the stock, if you buy, you could have a hard time to sell if no volume support. If over millions of shares traded like CVDT had, you could make a trade. For me, this is just a position trade.

It's chart should follow what CVDT did, when volume kicked in on CVDT (10 mil shares traded/day), it popped up big.

Some volume change scan results - SHOE/HED/SCOX

SHOE 2.34, will watch it closely today, see if selling is stopped on volume, trend reversal, or selling resumes. Close above $2.51 will signal a trend reversal.

http://www3.stockfetcher.com/sfchart/422902744.png

http://charts.dacharts.com/2007-05-30/smallk07.png

HED 4.09, possible continuation pattern.

http://www3.stockfetcher.com/sfchart/11772574.png

SCOX: $1.44 - volume exploded, candle formation is bearish, selling pressure kicked in, bagholders couldn't wait to get out. If it goes green today, possible a trend reversal, otherwise, it is just another NADDAQ pump/dump.

http://www3.stockfetcher.com/sfchart/621018190.png

I really like this filter

I need to find the filter which generated CSCT, MGRM, and ARGA last Thursday night. The stocks were found before they make breakout moves in the next two days. I have over 30 filters to screen for stocks based on different rules.

These three stocks made nice gains Friday, today they gained another 6-8% .

http://pennytradertim.blogspot.com/search?q=csct

http://pennytradertim.blogspot.com/search?q=arga

http://pennytradertim.blogspot.com/search?q=mgrm

CSCT:



ARGA:



MGRM:

Brokeage firm gives you 30 times intraday buying power

My friend just sent me this info. This broker allows you to trade 30 times cash you deposited., no daytrading buying power issue. Put $5K and trade $150K intraday.

http://www.worldwidetradingcapital.com


AM I RESPONSIBLE FOR ANY LOSSES THAT EXCEED MY EQUITY BALANCE?

NO. Our affiliate private capital firms utilize sophisticated risk management technology to monitor all trading activity for sub-contractor accounts. These programs provide our dedicated risk management team with the capability to implement "auto-liquidation" on an account which closes out all positions prior to the market close should an account fall to a balance of $2,000 or lower.

Commisson: $2.95/ticket or 0.002/share - fee schedule: http://www.worldwidetradingcapital.com/whywtc-pricing-learnmore.asp

FAQ: http://www.worldwidetradingcapital.com/faq.asp


They use the same trading platform as what I use now (Omni Pro) or I can choose to use Real Tick.

I will do a little bit more reading about it, sounds pretty good.

Stocky, you might want to take a look...

Watch list for Tuesday 05-29-2007

Needs to filter out the ones has already gone up over 10% on Friday:

QQQQ charts

Plugged the templates to QQQQ, indeed, the NASDAQ doesn't look too good. Looks like a bull trap last week, there is a negative divergence on the daily.

If NASDAQ won't be able to pass $46.62 (daily close), it will falls to $45s next week.

On the NASDAQ weekly chart, there was a volume change one week ago, the yellow candlestock, the price was already at the upper band, looks like it is going to pull toward inside the band next week.




On the weekly, if breaks 46.30 will break the uptrend channel:




On the daily chart, volume change indicator happened two days ago, after the spike (buying climax), followed by a SELl signal, then a break of the uptrend channel:



Divergence on the daily chart, breaks $45.95, looking for $45.20.

Welcome back, Wall Street

After a long holiday weekend, investors return to face a busy week: housing, inflation, consumer confidence, GDP and labor market reports are all on tap

http://money.cnn.com/2007/05/25/markets/sun_lookahead/index.htm

Have a good weekend!

Enjoy your long weekend. We'll head to Lowes Motor Speedway and watch NASCAR racing.

GZGT 1.90

I posted it last week, I'll post it again. Hold this slow turtle for weeks if not months, I think it can give you a very nice return. Looking for $2s next week.

Good morning!

I think I'll need to find a new broker soon. I am very disappointed with my current broker, they charged me over $2K on EXTRA commission in the past month. I informed them since the very beginning, they never corrected it, now he sent me an email and telling me going forward will be corrected, give me a break!

From: Keith
Sent: Friday, May 25, 2007 8:27 AM
To: TIM
Subject: Re: FW: New Account

This will be adjusted for monday morning it will be $5 for UBSS going forward

Im sorry for the hassle Tim my programmers suck sometimes

On 5/25/07, TIM wrote
Keith, you were probable too busy, sorry I am bringing up this again, the issue with UBSS has not been corrected. I've made several hundreds trades with UBSS for the past month, each was charged $7 extra, I am paying $500 to $1k a day on commissions and fees, at this rate, my account could go to $0 very soon 

Here are some trades I made yesterday with UBSS:

General Margin 05/24/2007 05/30/2007 124238 NA4AN HMIT HIDALGO MINING S -2,400.000 .80000 1,920.00 4.50 7.21 1,908.29 USD 05/24/2007
General Margin 05/24/2007 05/30/2007 125533 NA6JL HMIT HIDALGO MINING B 2,000.000 .84000 -1,680.00 4.50 7.00 -1,691.50 USD 05/24/2007
General Margin 05/24/2007 05/30/2007 130647 NA5ZF HMIT HIDALGO MINING S -2,000.000 .81000 1,620.00 4.50 7.18 1,608.32 USD 05/24/2007

General Margin 05/24/2007 05/30/2007 134018 NA6ZG JAGH US4700804093 JAG MEDIA HLDGS S -2,000.000 .77000 1,540.00 4.50 7.18 1,528.32 USD 05/24/2007
General Margin 05/24/2007 05/30/2007 134018 NA6ZG JAGH US4700804093 JAG MEDIA HLDGS S -2,000.000 .77000 1,540.00 4.50 7.18 1,528.32 USD 05/24/2007
General Margin 05/24/2007 05/30/2007 154150 NA7F0 JAGH US4700804093 JAG MEDIA HLDGS S -3,000.000 .75000 2,250.00 4.50 7.26 2,238.24 USD 05/24/2007

Stocks to watch tomorrow

So I have INRA VRA CSCT ARGA TTP MGRM.

Of course, HMIT shall be well played into next week, it is exactly the same type of the game repeatedly played for several days until the promo is over (and all of his other stocks acted in the same pattern in the past) - open gaps up, tanks, shakes the tree, acts like a POS, find the bottom, bounces 30-50%, going strong, finish in green.

INRA 0.10 and VRA 0.042

INRA 0.10 and VRA 0.042:

CSCT 13.05

ARGA 1.23

Same type of the chart:

TTP 2.09

TTP's chart looks like a carbon copy of MGRM - it's generated from the same filter.

MGRM $1.66

I'm doing some stock scan tonight, I will also work on my shorting filter. Looks like it is a good time to find stocks to go short than to go long.

MGRM formed a nice support at 1.50s. Looks like it wants to go higher, break 1.70 will quickly goes to 1.80-1.84, that's the next resistence area. The volume is increasing too for the past several days.

CSUN

CSUN's IPO just caught on the worst days of the market in weeks. It performed quite disappointly today. Here are the numbers on CSUN.

(1) The gaps are almost filled, the dark purple areas are the gaps. Today it filled the gaps to 13.70 and then to 13.50 very quickly. It has 0.30 to go to reach $13.36, $13.36 is the lower 3.50% level (or variance area on a normal distrubution). The mean is at $14.71 (or so-called value area). 93% of the volume are traded between $13.36 and $16. It should find buyers if the price drops below $13.36.







(2) If we compare CSUN to JASO - the same type of companies, we might get some hints from looking at JASO's performance in the first couple days after its IPO. JASO went from $16.40 to $19.5 on the 1st day of the IPO, eventually, it went to $16 again on the 5th day after the IPO, it bounced on the 6th day and went to $19s on the 7th day. Not sure if CSUN could pull a JASO, it depends on the market environment, if the whole market tanks, no stocks are exceptions.

Play for tomorrow

The scans posted last night turned out to have four nice winners with about 15-30% gain. However, I didn't get much time to play them because of HMIT. No more scans tonight, I know what stock to play tomorrow - it is the same stock played today, same strategy - a repeat.

CSUN 14.60

CSUN is amost reaching to my buying range, maybe tomorrow at the open, a nice gap down near $14 will do it.

I think I should stop trading for the day, closed most positions, the market is turning ugly. Thanks HMIT, you made my day.

AMZN

Made some dumb mistakes trying to guess where the AMZN bottom is and trying to play long. Gave back $300 on AMZN in the last 10 minutes, my hands are too slow to pull the trigger on the sell side. Nowhere in the chart it says BUY, all indicators were on the short side.

Here are what I bought based on my scans last night

HMB, CMGI, AMCC, MFW, MCEL.

Missed GPIC/FMT.

HMIT 0.54 x 0.56

This stock was trading over a dollar several days ago, it closed at $0.75 yesterday, now at $0.55 x 0.56. I am hearing they're shaking the tree before the run, this is next birdie from a well-known group. I am buying 2K here, small $1K.

MFW 62.16

A few days ago, when AMZN was at $61s, I mentioned it was ready for the next leg up to $68 on ET. I was two days ahead, I should have bought some calls. I think MFW possible makes an AMZN type run. it popped up like AMZN (maybe due to earnings too), then consolidated at higher price levels with some nice flags. Have a solid support at 57s, possible next leg up.

HMB $1.81

HMB: $1.8, very interesting chart, could be a nice bounce play, will watch it very closely.

Stock fetcher results 4 05-22-2007

Deadcats formed a bottom in the past two days and maybe ready to bounce, however, some of these have topped in the hourly chart, really cannot guarantee the next day finishes in green, usually need to wait for hourly consonsolidation finishes. See some of my comments.

Charts:

Stock fetcher results 3 05-22-2007

Ascending triangle stocks:

CMGI/ICGE/SIAL/FLE/CASY/EWT/WIN/DOV/CHRS/PCL/NYT.

CMGI:


SIAL:



FLE:




CASY




ICGE

Stock fetcher results 2 05-22-2007

The scan results of this filter is based on 200 WMA and volume.

Stock fetcher results 1 05-22-2007

Per your request,, I will post some more stockfetcher scan resluts:

MOMO 1 - this filter generated some good pops in the past, the theory is the momo continues to the next day. Have to look at each chart and the news behind them, some of them are just one day wonders, if it is finished in red, I would usually skip looking at it.

I will check out some of them tonight if I have time....


Stocks between $to $5 with volume 200K and above:



Stocks between $6 and $15:

GYMB

GYMB earnings after the closing bell tomorrow. This GYMB always moves up or down big on earnings and the guidance, look at its chart for the past year, it had some huge gaps on earnings and guidance, I'll read more about the company/news and plan a strategy to play.

Etrade.....

I am wondering who could trade profitably with Etrade for accounts under $25K, I bought CSUN for my friend last week at $13, I added 500 more at $14, three days later, I still unable to put a sell order, crazy Etrade....

Swing trade

I've been playing very cautiously for the past two days. I want to test one of my old trading strategies - swing trading type, holding not many shares, but hold it for a day or two and get out with a better profit margin. I think the result speaks itself today. I sold CSUN right at the top around 15.70, thanks for some better charting tools. I'll get back in CSUN again tomorrow, I think around 14.5 area based on chart, then ride for another dollar gain, I hope.

SPSN is not easy to play, it is sort of like CPWR the other day. I think I should stay away from these NASDAQ stocks gapped up huge with volume, these kind of gaps always screw the charts and TA indicators, make wrong judgement.

I had some Esignal/Ensign feed problems yesterday while trying to trade AMZN, for some reason, every time a stock moves fast (up or down), Ensign freezes. I don't like that when it happens. I chatted with Ensign support, they said maybe anti-virus program caused the issue. I turned it off, still don't see much improvement. I have been using Quotetracker for a while, but never used its charting part. I tweaked quotetracker charting indicators last night, this morning, I started to test it, it is doing a good job.

CSUN, $15.70, take out some chips out of the table, quite a bounce in two days:

Some possible plays for next week #4

Stocks with volume over 150% above 50 day average volume:

THK $1.89, AVAN 1.04, PESI 3.16, NPLA 1.32, MIVA 4.70, AXGC 2.55.

Some possible plays for next week #3

ROST $34.52, ascending triangle.

Also, some others appeared in the same scanner, GGAL, BDH, XPRT, PZE