China stocks in play

I wanted to place a long on sino-env and delong today so i woke up at 10am. By then, sino-env and delong has risen too far for me to place a long without taking too much risk. For the record, when i log in at 1030am, sino-env has already rise by close to 20% if my eyes were not playing tricks on me. So i miss out of the china play altogether for this week but at least my fren din since i told him to place a long quite some time ago so now he owes me a meal :)

Right now, i do tink there is a lot of speculation on china stocks. Basically every stock that had the word China in it went straight north through the roof. Such a sudden upwards movement is prone to retracement. I am looking for a retracement with flags formation on low volume this time round perhaps.

Quite a lot of indices are showing bearish divergence and that includes the Shanghai Stock Exchange with both MACD and RSI showing bearish divergence. I am not doubting the charts or the technical indicators but i do think my trading rules regarding indices is too strict. Due to my conviction that the indices are not showing the go ahead signal in my opinion, i miss out on quite a lot of profitable trades for the past few weeks. Maybe it's time to modify my trading rules slightly.

Straits Times Index Chart:


The sesdaq chart has close the gap and broke out of the ascending triangle formation. But bearish divergence on the RSI is spotted. This move should be short-lived.

UOB Sesdaq Chart: