For the past two months the Chinese Internet stocks, which we have covered on here many times, have been among the strongest stocks in the market. Traders have been rewarded buying dips and playing breakouts in the sector. SINA Corporation (SINA) has lead the charge, racing to new highs. Baidu.com, Inc. (BIDU) has remained strong. New issue Youku.com, Inc. (YOKU) also has been on the move.
The last one, which I think is setting up well today, is Sohu.com, Inc. (SOHU). SOHU has acted very well, although lagging SINA more recently, and looks technically ready for new highs. Sohu.com is an internet company that provides news, information, video content, entertainment, and communications to the People’s Republic of China.
Technically I listed this at $86 in the end of March for a quick breakout momentum trade, and now it has a new upper base that looks it looks poised to break above. I am long tier one and will add if it can break above $98 and hold. This should open the door to new highs. My stop would be $90.50.
*DISCLOSURE: Long SOHU
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