More on China

More on China from Chart of the Day:

...{T}he Chinese stock market went parabolic from mid-2005 until late 2007. China's boom was immediately followed by a financial crisis induced bust with the Shanghai Composite Index plunging 72% in a little more than one year. Unlike what occurred stateside, China's post-financial crisis rally was relatively short-lived (only nine months). Over the past two years, the Shanghai Composite Index has traded within the confines of a relatively steep downward sloping trend channel. Over the past week, the Shanghai Composite has worked its way higher as Chinese stock market investors anticipate the introduction/extension of stimulative government policies after this week's Central Economic Work Conference. This recent rally, has brought Chinese stock prices right back up to resistance (red line).

I think foreign markets have the potential to do well in 2013 and China has the potential to be a star next year.  I continue to add to these positions in certain strategies that we employ.  Just remember that potential doesn't necessarily mean that the event will occur and we'll monitor this thesis assiduously going forward just in case we're wrong.  

Link:  Chart of the Day:  China.

*Long various Chinese ETFs in client and personal accounts.