All of the major stock indexes are rallying sharply higher today. Technology, energy, precious metals, and even the financial stocks are trading higher on the session. By all accounts the major stock indexes are holding up very well. While this rally appears strong today there are a few leading stocks that just can’t seem to catch a bid. Stocks that fail to rally when the stock market is strong must be watched closely. These stocks are signaling weak relative strength compared to the major stock indexes. Therefore, when the markets do decline again these stocks will likely lead the markets lower.
Sina Corp (NASDAQ:SINA) is selling off sharply today. SINA stock is trading lower by $4.05 to $59.10 a share. This stock will have intra-day support around the $57.50 and $55.50 levels. The stock is also trading below all of the major moving averages on the daily chart which puts the stock in a weak technical chart position. Any stock that is trading in negative territory when the major stock indexes are trading sharply higher should be watched closely as it will normally mean lower prices are to follow when the stock rally subsides.
Other stocks that are trading lower with Sina Corp are Sohu.com Inc (NASDAQ:SOHU), Renren Inc (NYSE:RENN), and E Commerce China Dangdang Inc (NYSE:DANG). It is very important to note that all of these stocks are leading Chinese ADR’s. Last night, the important Shanghai Index (China) finished higher by just 0.12 percent, meanwhile, all of the other Asian stock indexes were sharply higher. All traders and investors must be aware of the weakness in many of the leading Chinese ADR’s at this time.
Nicholas Santiago
InTheMoneyStocks.com
