Chinese Stocks Remain Strong Despite Market Weakness
This morning, the major stock market indexes are coming under very strong selling pressure. The stronger U.S. Dollar Index is obviously the catalyst for the early stock market decline, stocks and commodities will deflate and trade lower when the dollar strengthens. There is one group of stocks that are showing strength this morning, it is Chinese ADR's. Last night, the highly popular and followed Shanghai Index(China) traded higher by more than 2.00 percent. The night before the Shanghai Index traded higher by 1.5 percent. Therefore, the Shanghai Index has rallied higher by 3.75 percent in the past two trading sessions. It only makes sense that the Chinese ADR's are trading higher again this morning.
Some of the leading Chinese ADR's that are rallying higher include Baidu Inc.(NASDAQ:BIDU), Sina Corp.(NASDAQ:SINA), Sohu.com Inc.(NASDAQ:SOHU), and NetEase.com Inc.(NASDAQ:NTES). Should the major stock indexes recover sometime during the trading session these stocks would likely trade higher and lead the markets.