CTrip.com is a good example of a trending stock that caused ovenight pain. In 2005, you were riding along comfortably in CTRP and boom, the next day you had a big loss and a stop.

Ctrip.com is also a good example because following an all-time high strategy had you buying back the stock in mid 2007. So far, that rebuy has you up 20 plus percent.

Will it continue?

There is no doubt that the stock and the Chinese markets are red hot, but there is lot’s of competition (today eLong.com, LONG) today and likely more in the future. Motley Fool took a good look at the stock back in August.

The Street.com had a piece on Ctrip.com as well.

I have avoided the stocks. I have stuck with Baidu as the search play and as I have sold most of it down, taken a position in recent breakout SINA.com. The way the Chinese stocks are moving right now, if one of the leaders has a hiccup, the others will feel it, so there is no likely better one than the other.

As the bull market matures ven further in China, that will change and the real leaders will emerge in the next bull.

Brian takes a deeper look at the technical picture: