China FXI: Decoupling before the Move. FXI, CZX.v, CUU.v

Decoupling is apparent from this chart: FXI has never really challenged October 2008 Low. We have Bullish higher lows on the chart, BB bands are getting closer indicating reduced volatility before the big move. Odds are high it will be move Up.

DOW INDU General markets at Buy from Oversold - Bear Market rally. FXI, HAU.to, DIA, SPX, QQQQ, CZX.v, LUN.to, CUU.v,

This is why we did not like to short the last leg down and preferred to accumulate Rally plays like China FXI, Zinc CZX.v, Zinc/Copper LUNto, CUU.v, Grains HAU.to. Now the chances are that US Dollar will go finally down on fundamentals, markets will rally and then US Corp should prey that Oil will stay below 75, our Lithum ideas will be handy as well now. Commodities is the place to be for us again: base metals Juniors are sold into the ground - for China play and Gold and Silver for "Bet against Central Banks", it is a new fashion among Hedge Funds when they are buying gold.

Trade is coming back: Dry Bulk Index shows signs of life. FCX, CZX.v, TNR.v, MAI.v

We have here a Buy crossover on PPO from extremely oversold level. We have already discuss the theory that Credit Crunch could overstated the real danger of down turn in Real economy in China and Asia. Trade is based on Credit facilities and if you can not secure Letter of Credit for your trade operations Trade is just do not happen. With all that flood of liquidity making its way into system recovery could be not so far away in commodities. China stimulus package is a Major turning point here as well. Ben and Hank will talk today on the Hill, before every time they have testified markets were selling off. Will they make it different this morning?