Since the election we have seen a big shift from high beta to lower beta names, money flowing into financials, metals and resource names. Further, Chinese stocks have been pushed aside yet some continue to perform, and one of those is Sina. This internet name has been scorching hot since midsummer, rising about 50% in the month of August alone. That is amazing performance, and as we see the relative strength went through the roof.
After about a 50% retracement the stock has started to go vertical once again, and with strong turnover to boot. We see a buy signal on the MACD here as well, momentum indicators solidly in overbought territory. We can see a path over the next few weeks that may follow the broken orange lines, which would put this stock at highs for the year.
