Another Chinese Internet Day: PWRD, DANG, QIHU, SOHU, CYOU, SINA, YOKU

More of the same as the hot money goes into the same group of stocks – this has been the “go to” area the past month.

Perfect World (PWRD) +10%
E-Commerce China Dangdang (DANG) +8%
Qihoo 360 Technology (QIHU) +7% [recent IPO]
Sohu.com (SOHU) +6%
Changyou.com (CYOU) +5%
Sina (SINA) +4%
Youku.com (YOKU) +4%

The valuation on some of these such as YOKU and QIHU has moved from ridiculous to absurd, but it doesn’t matter in a “momo” world.

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As for the greater market we’ve drift back up to the 50 day exponential moving average.   Buy the dip still wins as yesterday’s dip buyers should be congratulated for the Pavlov dog response.  At this time, a break of S&P 1295 is needed for bears to continue their recent winning streak.

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About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

Visit: Market Montage

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