As you know am an intrepid picker in what I call the Chinese boneyard of stocks. FINVIZ currently lists 154 China-based stocks. Pink Sheets lists 145 that trade on the pink sheets.
I own this symbol: WUHN, Wuhan General Group. I wrote about them first here, on October 21, 2009. I bought them because I liked the chart, and I liked the space that they were in. Here's a current chart through EOD Friday:
(Click to make larger/clearer)
As you can see, it had quite a pop on Friday--this is precisely the type of activity I would expect using this chart pattern.
I found this stock doing my low volatility scan. I liked the volume patterns, and I liked the "space" that the stock was in. However, because of EXTREMELY low float, it is a speculative stock at best. They also report on November 17, 2009 BMO. This type of chart pattern (low volatility, constructive volume, and basing) has been a successful chart pattern for me. I believe that the basing makes for a low risk entry. However, it is important to determine what you plan to do into the spike--I want to hold this longer term. I did not sell. But as a trade, I believe that selling into the volatility nets you a nice return. And there is always middling ground: sell part into the spike, and wait for volatility to collapse (if it does) and re-enter.
Position: Long WUHN.