China poised to move higher.....

China Index (FXI) Weekly Chart

• This chart of the Chinese stock index shows two very bullish patterns for the intermediate to long-term. You can see a large cup & handle pattern starting in 2008 and another cup & handle pattern imbedded in the larger one, outlined in blue.
• These patterns are very reliable and are signaling that China might be the place for equity investors over the next few years if the patterns materialize into breakouts.
• China's fundamentals are not very good, with the massive real estate bubble that they have created and their large inflation that they can't seem to get control of. However, price doesn't lie and it should be the ultimate decider on making financial decisions.
• Bottom line: I'm bullish on China if these patterns breakout, which it's looking like they will relatively soon.

I'm currently long NTES and SSRX, both Chinese companies.