The Global Bull Locks in 44.4% Gains in Hong Kong

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Most of your positions in your Global Bull Market Alert portfolio hit highs or near highs for the year last week. As a result, I have tightened a number of your stops in your current positions, including the iShares MSCI BRIC Index ETF (BKF), the iShares MSCI Chile Investable Market Index (ECH), the iShares MSCI Israel Cap Invest Mkt Index (EIS), the SPDR S&P Emerging Markets Small Cap ETF (EWX) and Mechel (MTL).

Your position in the iShares MSCI Hong Kong Index (EWH) also ended the week near record highs. With your December $15 calls expiring in 10 trading days, sell your current positions for a gain of 44.4%. But hold on to EWH itself for now. 

Your position in the First Trust ISE-Revere Natural Gas (FCG) ended the week lower, as gas prices corrected. With the December $15 options expiring soon, sell your options here at a loss, and close your position in FCG itself, as well.

Otherwise, your Global Bull Market Alert portfolio is well positioned to gain from a further upturn in global markets.

Portfolio Update

The iShares MSCI BRIC Index ETF (BKF) jumped 3.4% this past week after flirting with highs for the year. With the year-end rally in full force, BKF remains a BUY. Tighten your stop to $41.50.

Market Vectors Brazil Small-Cap ETF (BRF) jumped 4.85%, hitting a record high on Dec. 2. With this subsector of an already hot market one of the top performers in global markets this year, your bet on Brazilian small caps remains a BUY.

The iShares MSCI Chile Investable Market Index (ECH) hit a high for the year last week, before closing the week 1.89% higher. On Dec. 15, Chile is expected to win entry to OECD’s club of developed countries, the first country in South America to do so. ECH remains a BUY. Tighten your stop to $47.25.

The iShares MSCI Israel Cap Invest Mkt Index (EIS) jumped 3.36% on the week as it hit a high for the year of $53.59 last Wednesday. Israel remains a solid bet and remains a BUY. Tighten your stop to $47.50.

The iShares MSCI Hong Kong Index (EWH) closed a hair under its high for the year — last seen in October. Hong Kong remains a BUY.

SPDR S&P Emerging Markets Small Cap ETF (EWX) jumped 3.6% last week, back near its highs for the year. A bet on a bounce in global stock markets before the end of the new year, this volatile bet is a BUY. Raise your stop to $42.50.

ICICI Bank Ltd. (IBN) jumped 5% this week as Indian markets recovered. With India recording a better than expected growth rate of 7.9% in Q3, IBN remains a BUY.

Mechel (MTL) has pulled back this week, as it was downgraded by Credit Suisse, which has been notoriously inaccurate about its calls for Mechel in the past. The company will be announcing earnings tomorrow for the nine months ending September 30, 2009, so you can expect the stock to move substantially. I expect positive news, so MTL remains a BUY. Raise your stop to $16.00.

Vimpel-Communications (VIP) rose 1.98% its first week in the portfolio. In addition, Vimpel-Communications’ two largest shareholders agreed to appoint Alexander Izosimov as chief executive of the enlarged company. VIP remains a BUY.

P.S. With the help of global financial stimulus, a number of global markets have rallied from their lows of 2008, providing investors who were invested in the right markets at the right time with healthy returns. Although the question remains — how do you become one of those investors? For an answer, I encourage you to attend The World MoneyShow in Orlando, February 3-6, 2010, at The Gaylord Palms Hotel and Convention Center, to hear more than 60 leading experts. They will be on hand to provide you with insights and recommendations to help you identify emerging opportunities around the globe. I hope that you will join me there! Visit The World MoneyShow Orlando to register FREE today!

P.P.S. If you want to keep up with my latest insights on developments in fast-paced global markets, you can now follow me on Twitter on @NickVardy.

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