First day of trading in 2010!

The bull is a bit tired by looking at KLSE, Hong Kong and Singapore indices. At 12.30pm, Hong Kong is dipping quite sharply. Not a good sign to kick off a year.

All the charts in the world indices show tiredness after the record breaking rally of 2009.

Since CNY is not far in the horizon, it is not a bad idea to check out the Shanghai index.

The red circle highlights the correction in 2007 after the CNY. The bubble was boiling before the CNY due to the belief that year of pig will bring good fortune. Anyway, the correction looks small compared to the whole year performance. It was just a hype that every was speculating on the coming Beijing Olympic. Anyway, the bubble burst at the beginning of 2008 before the Beijing Olympic.

Shanghai then had a good run in 2009 and what's in store for 2010? Everyone seems to have this question and the coming CNY rally may depend on this as well. The chart looks weary for all indices including Shanghai index. And most likely it will keep that way by looking at the Baltic Dry Index I mentioned earlier.

Anyway, good value stocks will perform well as no one can resist good earnings and that is why PE and PEG are important for 2010 after all stocks have almost reached their all-time-high. It's back to the value assessment game. I bet all analysts are busy crunching numbers to find cheap stocks based on PE and PEG in order to squeezed the juice out of the drying stock market. Some even suggest a rest of a few months is a good strategy. I don't want to miss out the CNY rally and I still pay attention to good value Chinese stock listed in Bursa.

Xinquan is the only stock I like for such category. I'm looking for other non-Chinese stock as well. Any suggestions?