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Where is the Bull? Follow-Up

Published on October 2, 2007

Where is the Bull? Follow-Up

October 2, 2007

(for details pls visit www.OptionPundit.net)

Where is the Bull Market, in US, well everyone now knows that it’s in China. I read everyday how stellar is the performance of all the china stocks, I thought let me revisit a post that I mentioned on April 23, 2007 (Where is the bull market, US, think again) Here is an update of the key 4 tickers I mentioned for play:

  • FXI (Everyone knows it now) up +75% since then.
  • EEB (BRIC play) up +49%
  • EWS (Singapore) up +17.5%
  • IFN (India) up + 32.5%

where-is-the-bull.pngIn comparison, Dow is only up +8.5% and S&P500 a mere +4.5% (since April 23, 2007). There is more to it. It’s the C-factor (I call it for China factor) that’s driving every body nuts. Just check out any Chinese IPO, regardless whether or not it makes good sum of money, it doubles/triples fairly quickly. I have cautiously been in-n-out from China counters to take advantage of rally. SNP, EJ, RCH, are just few to name. LFT is the next China IPO. Is there a bubble, of course, but hey who cares as long as you know what you are doing.

HSI going to moon.gifI have never came across anything like this for long time, did you? Hang Seng index is up nearly 50% in little less than 7wks. In fact most of Asia is going crazy for Chinese stocks, anything that anyone can get hold of as long as it generates 50% of its revenue from China (as per new regulations in China, two new funds have started that can buy stakes in companies having more than 50% revenue in China, the scheme is called Qualified Domestic Institutional Investor (QDII)). With its massive reserves and dollar on decline, C-factor is major force to reckon with.

Markets are flirting with all time highs, a lot of opportunities(just browse through lotsa blogs), trade with a plan and trade profitably (WAG and GRMN have been beaten down badly, I expect a short lived technical rebound)

Profitable trading, OP

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