To OTC Journal Members: 
 

China Stocks Rocking: FXI Notches 40% For OTC Journal

If you want to make a lot of money in equities for the next ten years, you have to be exposed to China. It's that simple. The Goldman Sachs chart I published last week tells the whole story- 8% GDP growth in China for the next three years- the rest of the world will be barely eaking out small gains.

Large cap China stocks are rocking today. Economic news is fueling the rally. Both the  manufacturing index and the purchasing manager index were up for March. Coal demand in soaring, which plays directly into the strength of China Energy Recovery (OTC BB: CGYV). The stock is making a feeble attempt to get through $2 today on light volume.

FXI, which I have been consistently saying is a must for any long term growth portfolio, is now trying for $35- up from the pound the table buy recommendation of $25 back in January (40% cash, 80% margin gain). FXI is the ETF of large cap China companies.

There's a big gap in the chart today, so if you're finally convinced this is where you need to be, but don't own it yet, you might want to keep your fingers crossed for that gap to fill. If FXI comes back to about $32, that would be a good entry level now.

China Energy Recovery (CGYV) got some ink today as well with online publisher Seeking Alpha. Click here to read the article. The author is long CGYV along with a number of other smaller China ideas with high growth rates.
 

FAZ Flopping

The market's ability to "defy gravity" remains intact today. The DOW is up 167 and the S&P 18 as I write this. The weekend idea to short the financials via FAZ is problematic in the early going. FAZ opened at $8.35, and is now about $7.80. The market is certainly due for a correction, so I'm hopeful the remainder of the week will bring a move in the other direction. It would be healthy for the long term prospects for much higher levels. 

Keep your SSL at $7.50, and if it goes there just sell and get out. There's no telling if the long overdue correction is coming this week.
 

Do You Twitter?

About a year ago I asked my techies if there was any way we could get ideas to investors with text messaging to cell phones. I was prepared to spend some money as I saw this as the easiest way to quickly notify investors of important events.

The folks at TWITTER did it for me, and it's all free. Worth waiting for. Set up your TWITTER account (free), and become a follower of the OTC Journal. I'll use it for quick updates and coming events. 

Just go to www.twitter.com, and enroll. From there, adding to your Twitter network is a little tricky, and there's a learning curve. Then, go to the home page at www.otcjournal.com, and click on the "Follow" button on the Twitter box. Or, go directly to http://twitter.com/otcjournal.

Sign up today, join as a follower, and I'll start using it to everyone's benefit. Tell your friends to sign up as well.

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