If you look at FXI, it has had a nice run since Oct 2013 (in fact, we recommended this play to individuals who were willing to invest for the long haul). It traded as high as 42 before pulling back. The 40-42 ranges is a zone of pretty strong resistance so this pullback is to be expected. The next leg up should propel it past this point and once former resistance becomes support, one can expect the Chinese markets to really take off. When FXI closes above 42 on a monthly basis, it should easily be in a position to test the 50-54 ranges before running into any resistance. We fully expect FXI to eventually trade to new all time highs and once the current all time is taken out, the path for a move to the 140 plus ranges will be in place. There are many blue chip stocks selling at a discount so long term players can continue opening up positions in these companies. Another very good long term play is the Russian market. Believe it or not many will look back in shock at their inability to recognize this lovely long term opportunity. No matter how hard the USA tries to destroy Russia, they will not succeed because this time round, the Chinese have implicitly stated that they will not back any sanctions against the Russians; for the most part South America is also backing up Russia. Big changes are coming. Market Update Sept 30, 2014
FXI is currently experiencing a healthy pullback and if you look at a long term chart, the current price is truly low. If $37 is taken out on a weekly basis, then a test of the 34 ranges can be expected; this would make for a splendid long term entry point. Many Russian stocks such VIP, MBT, etc are trading at mouth watering levels from a long term perspective; minimum 2-3 year time line is needed. We are currently waiting for the stock to stabilise before issuing new entry points. We are also looking closely at VIP, MBT, FXI, etc.
Subscribe to our free newsletter to keep abreast of the latest developments; we cover everything from the financial markets to the World’s food supplies. Mass Psychology knows no limits, utilised properly it can spot trends in any market, and we can show how to protect yourself and benefit from these new trends. The world is changing it’s a dog eat dog world, but you do not need to descend into the pits of filth; you have the choice to distance yourself from this sub-human behaviour and empower yourself both mentally and financially; the choice lies within your palms
Other Articles of Interest
Two key Market Indicators rendered useless (April 20)
Dollar Bull Still In Play (Oct 24)
Gold Approaching Critical Juncture (Sept 30)
China; A Great Time To Buy