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By Jim Woods
Co-author, Billion Dollar Green: Profit from the Eco Revolution
“To hell with circumstances; I create opportunities.”
—Bruce Lee
Perhaps the greatest martial artist of all time knew that in order to prevail, you must constantly seek out opportunities to
succeed. This is true whether you are talking about fighting or investing. In fact, in many respects, investing is very much a
fight. It’s a battle involving strategy, intelligence and the ability to strike when and where the moment is right.Well, the “when” is now, and the “where” is China and the emerging markets.
You are about to find out the best ways to take advantage of the tremendous bull stampeding through China and the emerging markets.
By hitching your portfolio on to the immense power of the dragon’s tail, you can make sure you put yourself in the best position
possible to achieve fire-breathing returns.Next: ProShares UltraShort Lehman 20+ Year Treasury ETF
(TBT)
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1. ProShares UltraShort Lehman 20+ Year Treasury ETF (TBT)
By Michael Shulman
The BRIC countries (Brazil, Russia, India, China) were on fire a while ago, and now they are again. As this investment trend remains
hot in the short term (be ready to play the burst bubble longer term), you should consider shorting Treasuries. Money flowing back
into the emerging markets shows investors’ willingness to take on more risk—in any form. And the more they accept risk, the less
they want Treasuries. Plus, Treasuries are tanking in expectations of inflation.The ProShares UltraShort Lehman 20+ Year Treasury ETF (TBT) is a double inverse ETF—it
goes up 2% when Treasuries fall 1%.Want to make money in the bond market? Find
out how you can. Hint: Do not buy bonds.
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2. iShares FTSE/Xinhua China 25 Index Fund (FXI)
By Sam Collins
The iShares FTSE/Xinhua China 25 Index Fund (FXI) seeks results that correspond,
generally, to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 Index.FXI executed a bullish gold cross at $30 with a price target of $50. It has a dividend yield of just under 2%.
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3. Synthesis Energy Systems Inc. (SYMX)
By Tobin Smith
Lack of clean coal is a huge problem for China, and Synthesis Energy Systems Inc. (SYMX) has
the solution. The company builds, owns and operates coal gasification plants that convert low-rank coal and coal wastes into higher
value energy products, such as transportation fuels and ammonia. Its business is primarily focused in China and the United States,
which, combined, represent 40% of total global coal reserves, according to U.S. Department of Energy estimates.Its first commercial-scale coal gasification plant in China has been in operation since January 2008, and a second plant is
under construction. The company also has another plant under development in China, as well as ones in West Virginia, Mississippi
and North Dakota.SYMX is selling for half the cash it has on balance sheet, so there is huge upside potential.
Get another coal play you should consider.
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4. United States Natural Gas Fund (UNG)
By Michael Shulman
The belief in the growth of China and emerging markets is fueling—pardon the pun—overall speculation in oil and
natural gas, as well as other commodities. The emerging markets trade is also putting pressure on the U.S. dollar, which, when
it falls, also pushes the price of oil up. So you want to play commodities as part of your emerging market trade—and the
one with the best fundamentals right now is natural gas.Natural gas, due to high inventories, is trading at near historic lows compared to oil. This environmentally friendly fuel will
grow in value over time, so look at the United States Natural Gas Fund (UNG), the exchange-traded
fund (ETF) for natural gas. The short-term trade is a call option on the UNG; longer term, this ETF is a classic buy and hold.UNG is one of the Top 10 Summer Stocks that will heat up your portfolio.
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5. Market Vectors Russia ETF (RSX)
By Sam Collins
Market Vectors Russia ETF (RSX) seeks to replicate, before fees and expenses,
the price and yield performance of the DAXglobal Russia+ Index. The index is comprised of companies with market capitalization
greater than $150 million that have a daily average traded volume of at least $1 million over the past six months.The stock executed a gold cross on June 1, and has a near-term price objective of $35. The recent recovery
in the price of crude oil could provide for an even higher goal, and the ETF provides a dividend yield of just under 1.5%.What other investments are benefitting from higher oil prices? Get the 12
Best Energy Stocks to Buy Now.
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6. Market Vectors Agribusiness ETF (MOO)
By Michael Shulman
As the standard of living increases in BRIC countries, demand for food will increase. The ETF for agricultural products has
a great symbol—MOO. The Market Vectors Agribusiness ETF is a long-term
play on more people wanting more and better food. Short term, the chart is a thing of beauty, and call options are reasonably
priced.Looking for more great trading ideas? Check out the Top
10 ‘New Frugal’ Stocks.
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7. HLS Systems International (HOLI)
By Tobin Smith
China’s $585 billion stimulus plan includes $100 billion for new railroads and $50 billion for the construction of 40 new nuclear
power plants. HLS Systems International (HOLI) is a Chinese manufacturer of automation
control systems.According to the company, “HLS is the only certified domestic automation control systems provider to the nuclear industry in
China. HLS is also one of only five automation control systems and products providers approved by China’s Ministry of Railways
in the 200 km to 250 km high-speed rail segment, and is one of only two automation control systems and products providers approved
in the 300 km to 350 km high-speed rail segment.”What’s more, the Chinese government has a minority interest in the company.
Put your options trading knowledge to the test. Test Your Options IQ.
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8. Aberdeen Asia-Pacific Income Fund (FAX)
By Sam Collins
Aberdeen Asia-Pacific Income Fund (FAX) was formerly known as the First Australia
Prime Income Fund. It operates as a closed-end fund that may invest up to 80% in Asian debt securities with a minimum investment
in Australian debt securities of 20%. The fund will invest at least 65% of total assets in securities with investment-grade ratings,
and has a dividend yield of 7.66%.Since October, the stock formed a triple-bottom with
a neckline breakout at $4.75 and a gold cross at $4.70. The target for the breakout is $6.30.More Trades From OptionsZone Analysts:
