Many Chinese companies are prospering as China’s economy is living large. My focus for the last few months has been on Chinese stocks.
Specifically, industries related to pollution control, automobiles and travel numerous stock gems. The Shanghai Composite closed today at 3317. A move to 3500 would mean a breakout from the powerful cup-and-handle chart formation — and could prelude even greater gains ahead (more on breakouts on Page 2). If the Shanghai Composite breaks past 3500, I think the stocks mentioned here could take off.
I’m a little leery of loading or portfolios with Chinese stocks because they of ten fall hard when the market goes into a correction. So I keep a wish list handy of stocks I would like to own if they were to dip. Overall our portfolios are in great shape with heavy positions in Priceline.com (PCLN), Apple (AAPL), and Amazon.com (AMZN). We seem to be in the sweet spot of the market.
