China is where its at and going to be

China's Global Rescue

Forward-thinking investors stand to double and triple their money in the months ahead.

Now is the time. If you're serious about making money in the stock market...if you're ready to take back the devastating losses Wall Street's incompetent elite have brought you...

If you're ready to create life-changing wealth, I have a critically important message for you:

Now is the time to step and buy the stocks that will lead the world out of recession.

This time, it's not the U.S. economic cavalry riding to the rescue...

It's China.

Forward-thinking investors who can read the writing on the great wall have the historic opportunity to turn the global financial tsunami into a flood of profits.

The People's Republic of Profits

I want to be clear - I'm no fan of China's heavy-handed, authoritarian government. But I also know their backs are against the wall. That's why China just announced $586 billion in spending to kickstart its economy.

We all know if there's any government on earth that has the power to do whatever it wants, it's China. And I'm not about to turn my back on this once-in-a-lifetime wealth-building opportunity.

Quite simply, I've never seen a better, slam-dunk set up than this.

Now, $586 billion may not sound like that much. After all, the U.S. just approved $700 billion in bailouts. But $700 billion is a drop in America's GDP bucket - less than 1%.

China will spend 16% of its GDP to get things moving. Now THAT'S a failsafe stimulus plan. It proves China's not kidding around when it comes to its economy. And the profits China's unprecedented plan can bring you - if you're in the right stocks - are no laughing matter, either. Unless you're laughing all the way to the bank...

The Cheapest Stocks in History

You probably remember when China's economic miracle was the envy of the world. Investors who saw the potential for Chinese stocks back in 2002 made fortunes. Stocks like:

· Sohu.com ran +8,700%

· C-Trip launched +1,033%

· Petrochina jumped +1,044%

· China Life made +1,228%

China produced more +1,000% gainers in a shorter time than any country in history. And while it would be crazy for me to promise you more +1,000% gains, it would be crazy to ignore the profit opportunities China's government is serving up.

Remember, it was China's insatiable demand for raw materials and energy that sent oil above $140 and had copper and steel trading at all-time highs. When China's engine of growth was hitting on all cylinders, it was the driver of global economic growth.

But now, the financial crisis and global recession have knocked Chinese stocks down to unheard of levels. Some of China's top companies are selling for 2 and 3 times earnings.

I've never seen stocks trade at such low valuations. If they were on the verge of bankruptcy, that would be one thing. But they're not. In fact, China's about to spend $586 billion dollars to guarantee that these companies keep growing.

eBay Shares at Auction Prices

It's the law of large numbers: It is impossible for a company to keep growing at a fast clip once it becomes very large. But few expected to hear that eBay's sales in its core auction segment might actually shrink, as is implied by near-term management guidance. Yet that appears to be a possibility in 2009, especially in the first half of the year. That helps explain why shares have fallen more than 60% from their 52-week high and I dont see a turn-around before the years out. PayPals continued problems is not helping either! eBay will celebrate the New Year below the $10 mark!

(CAT) gets Clawed

(CAT) Caterpillar Inc. – Most think this stock is recession-proof...? The Chinese government’s fiscal stimulus helped inspire a rally in commodity and construction related companies. Heavy equipment manufacturer, Caterpillar saw its shares rally to $40.88 before having to make do with a 1% gain to $38.83. Our market scanners honed in on a large and opportunistic bearish put spread in the December contract where a 15,000 lot transaction went through at a premium of a net 95 cents to establish limited downside protection. The trade involved a long position in the 35 puts and a short position at the 30 strike aimed at providing as much as 4.05 per contract should shares in Caterpillar reach or fall beneath the $30.00 price level by expiration. The recent 52-week low at $31.95 was established on October 24. It would appear that this investor is taking advantage of a market rally to reach for downside protection and has the view that there is only so much that governments can do to stop the rot.

Go Green - Hot Stocks / Options for the decade...

I am posting a package of longer-term picks I think these will be "the next big thing on the market" and consistently show big returns for the next ten years - go green! This is no speculative play, when you hear its all about timing and getting in on the ground floor...

...this is it! A perfect set-up with the oppertunity to get in on the ground floor; and most of these plays, your in the unfinished basement!)

Presidents can be associated with economic booms. Clinton's presidency rode the information superhighway during the tech boom of the 1990s. The most recent Bush presidency, which began in 2000, coincided with a run up in real estate values along with record high profits for energy producers like ExxonMobil . If Obama's economic boom lies within a green revolution, and he sticks by his "very do-able" plan to pump $150 billion into his "legacy" in reference to what was hot in the market during his Presidency, then we must turn our attention to the recently battered alternative energy including my favorite, solar! (cough, cough- JASO)

Here are the future "All*Stars" of that sector:

Solar Power

• (JASO) ~ closed @4.57
  • +QJPAB Jan '09 10 Call; bid price closed @ .20
  • +QJPCV Mar '09 12.50 Call; bid closed @.20
• (SRWRF).pk ~ closed @ 24.25; it'll be hard to even find available shares in this OTC stock
  

Young Solar Focused ETFs: (the following two ETFs below are less then a year old; if you are only opening a position in one, go with (TAN) - if you are going to spread your funds out, buy 75% of your ETF holdings in (TAN) and 25% in (KWT) which is a smaller, more risky play as far as ETFs go)

• (TAN) ~ closed @ 10.70
  • +TANDC Apr '09 15 Call; bid closed @ 1.00
• (KWT) ~ closed @ 16.50; the smaller fund of the two

Wind Power

• (FAN) ~ closed @ 13.00; a renewable energy fund that was launched only 4 months ago. I was never a "FAN" of wind energy stocks but looking at the current circumstances and if Obama sticks to one of his top priorities, wind and solar stocks will heat up the markets and blow away other sectors! (I know, keep my day job)
• (VWDRY).pk ~ closed Fri @ 14.05; OTC wind play
• (HSNTF).pk ~ closed @ 1.70; OTC wind play

Tips for Trading Options

Tip #1:

Protect a Lifetime of Wealth with Puts

Insure your stocks from loss (with very little effort or cost) by buying put options on the stocks that you already own or on stocks from the same sector and of similar fundamentals to those in your portfolio.

Make your put portfolio a separate profit center, even though it’s designed as an insurance policy. Buying cheap, out-of-the-money puts can provide this net. For a nominal price, you can get a lot of reassurance.

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Tip #2:

Exercise Your Right to Profit

Buy calls to initiate a long stock position.

If you buy a call at the $30 strike, then no matter how high that stock trades during the life of your options contract, you can buy shares at $30 right up until expiration. Plus, you’re not obligated to buy the stock, and you can close the trade at any time without touching a single share.

Even better: If the stock drops, the most you can lose is what you spent to buy the calls.

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Tip #3:

Buy Options the Right Way

Select options that are undervalued and underpriced and are trading close-to-the-money (i.e., the stock price is trading near the strike price).

Also, look for as much time as possible before expiration. This goes for buying both calls and puts. Another way to get a good price is to find a stock that is moving within a 2- or 3-point trading range.

Try to buy cheap call options when the stock is trading at the lower end of its range and cheap put options when it is at the upper end.

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Tip #4:

Test the Market-Makers’ Limits

A limit order requires that you get the price you want to pay or else your trade won’t be made.

As a result, when buying options with limit orders, it may take a few tries before getting an order executed at a price you want to pay.

To streamline the process, try to get a price that falls between the bid and ask prices.

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Tip #5:

Stop, Do Not Pass Go

Sometimes it’s best to exit a trade that’s no longer going your way.

Setting sell stops is a personal decision: 10%-50% down is standard. Once an option has lost half its value, it’s rare to see it make a full recovery, let alone become profitable.

Options are a cash business, and you have a very limited time in which they will either boom or go bust. The more a trade turns against you, the less you have in your account that’s earning interest and available for the next trading opportunity.

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Tip #6:

Look for Surprise Volatility

You have to know where to find stock option candidates. The nature of the market today creates opportunities for surprise volatility. It’s dominated by institutional money managers, and as these managers move huge amounts of cash both in and out of stocks, a lot of surprise volatility develops.

One place to look for stocks with surprise volatility potential is in momentum industries such as tech, biotech and telecom that are traded on the over-the-counter market. The smaller capitalizations of these types of stocks make them more volatile.

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Tip #7:

LEAPs Tilt the Odds in Your Favor

The best stocks to buy are those that are undervalued. And when you combine an undervalued stock with an undervalued LEAP, your chances of profit are much greater.

You can use a stock’s earnings estimates to help you determine the value of the shares its options. Multiply the consensus earnings estimate for the stock by its current price-to-earnings ratio to arrive at a projected stock price when your LEAP expires. If this price projection is above the breakeven stock price, you have found an undervalued LEAP, so you profit from the price difference and if the stock rises!

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Tip #8:

Trade Options to Generate Regular Income

Anyone who owns at least 100 shares of a stock—or owns call options—can sell (write) covered calls.

If you write a $20 Call priced at $2 per share, you would receive $200 in your account. ($2 x 100). This is, in effect, an insurance policy with $200 worth of downside protection. If shares drop 2 points (or $2), your option income covers your stock loss. So as long as the stock trades fairly flat, covered calls can put the stock to work harder for you and enable it to generate income for you even though shares are stagnant!

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Tip #9:

Get In-The-Money & Stay There

When an in-the-money option enters its last week before expiration, close the entire position and take profits.

If you own an in-the-money call and the stock is trading above the strike price at expiration, your right to buy the stock at the strike price will be executed UNLESS you indicate that you don’t want the stock.

Don’t wait for it to expire. Close the trade before it’s closed on your behalf.

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