Should I take a position on China stocks now?

Straits Times article today reinforced fact that Chinese equities will be the first to rise once this crisis is over. This point has already been mooted by Chua Soon Hock. A check on STI, and it shows Chinese equities showing some strength. Yanlord, especially, since it is blue-chip, and likely to benefit from China's stimulus package. Another one is Noble. A quick check on the charts show both counters' RSI piercing above 30, amidst MACD-prive positive divergence. Is it time to buy? Looks very very tempting, especially for a quick punt for Christmas.

Now, do bear in mind that this is still a downtrend. Should I long in a bear market? Answer is obvious. Actually, better to wait for RSI to come up, then short.

Kevin's blog:
Global economic problems still worsening !!
The problems are only just beginning to surface with the global economic slowdown. Remember that I mentioned about global auto manufacturers having to shutdown because they had too much inventory in the last month - with the closure being for one to two months. This was apparently caused by the credit crunch and problems with recognititon and acceptance of LCs. As this is being resolved....we will see a second phase which is actual inventory build-up from a contraction in global consumption which is hard to fix and takes more time to unwind.
This probably means more downside to stocks and even commodities. Have a look at some of the commodity price charts below for Gold, crude oil and palm oil to see the extent of the bubble bursting and the flight to safety (GOLD). Even our own STI Index which is trying to hold onto the 1600 level will in my opinion fall a further 20-30% in the coming months. Dont forget stock market volumes have thinned so rallies may not be convincing and volatility is also on the rise.

So, better to short than to long.