Bookkeeping: Limit Order for CNinsure (CISG) Activated

In the entry last week where we looked at Chinese insurer CNinsure's (CISG) earnings, we wrote

I have a limit purchase order down at $16 for this name; we'll see if it hits.

The stock almost hit $19 that day and has now dropped quite dramatically to hit our entry point this morning... we are in with a 1.4% stake at $16.00. Now let's be clear - individual stocks have lost a lot of their meaning and now are dominated by the movement of the greater market. If any panic sets in, in US markets this chart will be obsolete and CISG could be a $13 stock in the blink of an eye.

Since the U.S. markets are looking (to me anyhow) very similar to what China looked like a month ago, I am going to keep my stops tight here and we'll suffer no more than a 3% loss with a stop at $15.50. Chinese stocks are very volatile and a 3% move can happen within 5 minutes, so I would not be surprised to see this position shaken out. But discipline trumps all.

The problem right now is there are quite a few Chinese stocks I am interested, but they reside on a US exchange that is long overdue for a correction. Hence when (if) the US markets go, so will these stocks.... regardless of their own company specific metrics.

p.s. Lehman Brothers up another 80% today following Friday's 200% run - woo hoo.

Long CNinsure in fund, no personal position