Actually, some H-shares are turning really bullish...

Thanks to The Edge, I just realised some red chips listed on HKSE have turned really bullish....
Checking out on two China-based property developers, Sino-Ocean and China Overseas Land, they have actually made spectacular gains since Nov 2008. Sino-Ocean - abt. 90% and China Overseas - 20%.

Why are they so strong?
Fundamental:
1. China's real estate market bottoming out
2. Affordability of property improving after steep slide in prices
3. Unsold inventory has been substantially worked down
4. Possibility of further government stimulus to support property sector

Technical:
1. Both counters have actually successfully broken out of their 200-day MA, an extremely bullish sign.
2. Even weeklies are starting to reverse course, indicating a change in trend
3. ADX, however, is still weak. However, this is more inducative of a weakening of the current bear trend. It should pick up once prices rise.
4. Stochastics is at the overbought zone.

What can go wrong:
Dow makes new low in the coming weeks/ months. This may impair global stock market gains. H0wever, I have found these 2 counters to be uncorrelated with the Dow, as evidenced in the past few months.

What do I do?
Buy, of course. I still remember what Chua Soon Hock has said last year, that 2009 may be the year where "those who are short may not make money", but those "who are long may also not necessarily make money". He also said that the greatest opportunity lies in H-shares. I think this man is to be believed, but provided I am early to the party. At this juncture, I would think I am sill early to the party, as people are still wondering if the rally is for real, and the charts are just starting to show a possible reversal of trend. So, get in I should.

EP: Buy stop at 10 lots at HKD4.68 (we are not in a major bull, so my lot size will not be big).
SL: 3.68
TP1: 5.68
TP2: 7.68

I am really confident of this one. Think I have not seen a more confident chart for such a long time ever since 2007. How I miss those days!