Before Monday's opening bell, China said both imports and exports rose compared to last year's levels. Exports rose +17.7% from the same period last year which was the first increase in 14 months, and imports surged +55.9% to a record high. The fact that exports rose signals that the global economy continues to recover. However, the real news is that Chinese imports surged to a fresh all-time high, which supports the notion that China's economy is strong. It is important to note that there are over 1.3 billion people in China, which means that if only 30% of their population gets "wealthier" over the next few years that roughly equals the entire population of the United States. As we can see, the growth in China (and Asia as a whole) can have a tremendous impact on the global economy. 

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX -0.78%) is consolidating above its 50-day moving average (DMA) line and an upward trendline.  It finished the session +100% from its most extreme November 2008 low (not shown).

Vanceinfo Tech Inc Ads (VIT +$1.15 or +5.58% to $21.76) posted a considerable gain today and closed near the session high with +36% above average volume as it rallied above its pivot point.  On 1/06/10 it posted a solid gain with 4 times average volume for a new high close as it hit a new all-time high, but it pulled back on that session and closed under its pivot point. It traded higher on the next session, then negatively reversed and closed with a loss.  That recent action was noted as a sign of distributional pressure as it tried to rally from a choppy 11-week base, however today's gain offered some additional proof of institutional (I criteria) buying demand driving the stock to new highs (the N criteria). Its current Up/Down Volume Ratio of 1.4 is an unbiased indication that the overall technical price/volume action of late has been bullish, and no overhead supply exists to act as resistance.

The high-ranked Computer - Tech Services firm was featured in yellow in the 12/24/09 mid-day report (read here) while approaching all-time highs. It had come a long way this year, yet it built a sufficient length base following its steep ascent from its March low ($4.31). Fundamentally, its earnings and sales revenues increases have been above or at the +25% minimum guideline. Its small supply of only 11.4 million shares (the S criteria) in the publicly traded float could be a factor leading to greater volatility, especially in the event of mutual funds accumulating or distributing (selling) shares.  This heightens the need for caution when buying and the discipline to limit losses, as always, if any stock ever falls more than -7% from your buy price.

Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.