Monday Morning Charts

It’s really make-or-break time for the CRB. That said, the 61% retracement is a good place to bounce, and pullback to this level is quite normal in a commodity bull market.

Oil should be bouncing a lot more than it is with a Category 3 hurricane headed toward Energy Alley. This is indicative of the extreme pessimism in the market right now. Let’s see how the week plays out.

Gold also isn’t getting much of a break despite news of a big ramp-up in buying in India. Hmm …

Here is some news you can use.

OIL

Oil Rebounds From Five-Month Low as Ike Nears; Gold, Wheat, Copper Gain Crude oil and copper led gains in commodities as Hurricane Ike threatened rigs in the Gulf of Mexico and the U.S. government's takeover of Fannie Mae and Freddie Mac bolstered investors' expectations for growth.

Mexico Government Will Probably Set Oil Price at $80 Per Barrel in Budget Mexico, the second-biggest oil producer in the Western Hemisphere, will probably assume its crude exports will sell for $80 a barrel next year in a budget proposal the government plans to submit to Congress today.

OPEC to Pump Near Record Amounts of Crude as $106 Oil Price Stunts Growth OPEC, the supplier of 40 percent of the world's oil, will probably keep producing at a near record pace as $107-a-barrel crude squeezes the global economy.

Saudi crude price hikes may offer OPEC production hints

Its latest term crude prices suggest state-owned Saudi Arabian Oil Co (Saudi Aramco), may be starting to price in a period of lower output, even if OPEC next week doesn’t formally sign off on a production cut.

NATURAL GAS

Origin Says $8 Billion Conoco Gas Agreement Justifies Rejection of BG Bid Origin Energy Ltd., Australia's biggest producer of natural gas from coal seams, said an $8 billion transaction with ConocoPhillips ``more than justifies'' its rejection of a hostile takeover offer from BG Group Plc.

XX Sean’s note: Red-Hot Global Small Caps subscribers have one of these Aussie coal-seam gas companies in their portfolio – and it shot up 30% today, the biggest move in 3 ½ years. Why? Because this Origin deal is upping the ante on Australian coal-seam gas.

URANIUM

Energy, Toro Shares Rise in Sydney on Optimism Uranium Mining Ban May End Energy & Minerals Australia Ltd. and Toro Energy Ltd. led gains by uranium explorers in Western Australia on optimism the Liberal Party may win government after the weekend's state election and allow mining of the nuclear fuel.

US ECONOMY

Weekend Bailouts and Subsequent Market Reactions

Three observations/questions/takeaways from the past of weekend rescues history:

1. A strong rally lasts for a while, but it eventually fades and makes a new lower low; Each rally has been shorter in duration and weaker in intensity than the previous one;

2. The pre-Asian open news pattern reveals the Asset price focus is a large part of these issues;

3. What form of free markets have we evolved into? Its not Capitalism, its not Socialism, its not intelligent regulation. WTF is this??

Bank Insiders Step Up Purchases of Their Own Stock to Most in Two Decades Bank and savings and loan insiders spent more money buying shares of their companies in May, June and July this year than in any previous three months in at least two decades, betting that financial institutions are bouncing back from the credit-market crunch.

Paulson Bets He Can Do What Eluded Fed: Get Banks to Lend in Down Economy Henry Paulson is making a colossal bet that the U.S. Treasury can do what Ben S. Bernanke's Federal Reserve failed to do: Get banks to lend more freely when the deteriorating economy is still telling them to hold back.

GOLD

India’s gold imports jump 45%

India’s gold imports in August jumped 45 percent from a year ago, the first annual rise this year, as lower prices and upcoming festivals drove demand in the world’s leading consumer, a trade body chief said.

Check out my new gold and energy blog at MoneyAndMarkets.com

News You Can Use for Thursday

Hurricane Ike went from a tropical storm to a category 4 monster storm in a matter of hours. You can officially start freaking out now.

Here is some other news ...

ENERGY

Crude Oil Rises as Hurricane Ike Strengthens in Atlantic, Dollar Declines Crude oil rose for the first time in five days as Hurricane Ike gained force in the Atlantic, causing concern that U.S. oil supplies may be disrupted.

Oil Producers May Compel Opec to Cut Supply
There are indications that major oil producers may compel Organisation of Petroleum Exporting Countries (OPEC) to cut supply when the group meets on September 9, in Vienna, Austria.

OPEC's Crude Oil Production Fell 0.6% in August, Survey Shows
(Bloomberg) -- The Organization of Petroleum Exporting Countries' oil production dropped 0.6 percent in August, led by declines in Iraq and Saudi Arabia, a Bloomberg News survey showed.

OPEC pumped an average 32.575 million barrels a day last month, down 200,000 barrels from July, according to the survey of oil companies, producers and analysts. July output was revised down by 50,000 barrels a day. Production by the 12 members with quotas, all except Iraq, declined 50,000 barrels to 30.265 million barrels a day.

Australia's oil production down, but SA defies trend
AUSTRALIAN oil production dropped 11.5 per cent over the past financial year with all but one of the major oil producing basins experiencing a decline, a report from EnergyQuest says.

Oil prices drop as US opens reserve taps
LONDON (AFP) - Oil prices fell on Wednesday as the US government decided to release crude stocks from its strategic reserve after Hurricane Gustav halted energy production in the Gulf of Mexico.

AGRICULTURE

Wheat Extends Gains, Ends Longest Slump in 2 Years, on U.S. Export Demand Wheat climbed for a second day amid speculation the recent price drop to the lowest in about a month will attract overseas buyers. Corn and soybeans declined.

US ECONOMY

`Financial Tsunami' to Engulf Markets Unless Treasury Steps In, Gross Says The U.S. government needs to start buying assets to stem a bourgeoning ``financial tsunami,'' according to Bill Gross, manager of the world's biggest bond fund.

Jobless Claims in U.S. Rose More Than Forecast as Employers Faced Slowdown Unemployment rolls in the U.S. rose to the highest level in almost five years, and last week's initial claims for jobless benefits exceeded forecasts, as employers cut staff in the face of a slowing economy.

Ford sales plunge
Despite a slide in gas prices last month, sales of Ford's trucks and more fuel-efficient cars plunge nearly 27% in August -- far worse than forecasts.

GLOBAL ECONOMY

China's Manufacturing Economy in Recession?
On other boards I am reading, many are anticipating a huge jump in oil and gas prices next week. I do not know if that will happen, but I will offer the opinion that if it does not happen, or if it happens and prices quickly reverse lower, they will keep going a lot lower than most energy bulls think.

Check out my new gold and energy blog at MoneyAndMarkets.com

$45 trillion to combat global warming ... and other news you can use

$45 trillion needed to combat warming- The world needs to invest $45 trillion in energy in coming decades, build some 1,400 nuclear power plants and vastly expand wind power in order to halve greenhouse gas emissions by 2050, according to an energy study released Friday.

More on this story HERE.

Mexico sees lower oil exports for 2008 Pemex Chief Executive Jesus Reyes Heroles said the state-run company's oil exports were headed for an average of 1.40 million to 1.45 million barrels per day over 2008, around 15 percent below a goal set in Mexico's 2008 budget of 1.683 million bpd. The estimation is also well below an average export level of 1.686 million bpd in 2007.

Crude Oil Rises a Second Day on Supply Concerns, Dollar Outlook ``People are really responding to longer-term supply issues,'' said John Vautrain, vice president at consultants Purvin & Gertz Inc. in Singapore, in an interview with Bloomberg Television. ``Every time we hear good news about some big new find somewhere you have to counteract that with the news that there are a couple of million barrels a day disappearing from the market every year just because of natural declines.''

Corn Reaches Record, Soybeans at Three-Month High on Heavy Rain in Midwest Corn climbed for a third day to a record and soybeans rose to a three-month high in Chicago as excessive rains in the U.S. Midwest flooded some fields, raising concerns about slowing crop development and production losses.

Gold Gains in London Trading Before U.S. Jobs Report; Platinum Also Climbs Gold led precious metals higher in London on speculation a U.S. jobs report will indicate slower economic growth, buoying investor demand for a hedge against declines in the U.S. dollar.

Apache May Take Two Months to Restore Partial Gas Supply to West Australia Western Australian natural gas output may be reduced for the next two months because of an explosion, cutting supplies to Rio Tinto Group, Alcoa Inc. and Newcrest Mining Ltd. at a time of rising metals demand and prices.

China May Auto Sales Grow at Faster-Than-Expected Pace of 16% After Quake China's passenger-car sales grew a faster-than-expected 16 percent last month, as demand spurred by economic growth withstood the effects of the country's deadliest earthquake in 32 years.

Check out my new gold and energy blog at MoneyAndMarkets.com

News You Can Use for Thursday

The $3 Trillion War
n 2005, a Nobel prize-winning economist began the painstaking process of calculating the true cost of the Iraq war. In his new book, he reveals how short-sighted budget decisions, cover-ups and a war fought in bad faith will affect us all for decades to come.

Is Greenspan now trying to sink the dollar?
"Bubbles" Greenspan, the man who did more than anyone on the planet to ensure that there would be inflation on a global scale by bringing interest rates down to insanely low levels and flooding the markets with cheap credit is now trying to con Americans one last time by engineering a de facto default by the US on its foreign obligations, via devaluation.

U.S. Economy Grew 0.6% in Fourth Quarter, Less Than Economists Estimated
Payrolls and consumer confidence have dropped and the housing slump has intensified so far in 2008, raising the odds that the world's biggest economy will tip into a recession.

XX As my friend and expert currency trader Boris Schlossberg wrote early this morning: "Today’s US GDP numbers could provide some fireworks in today’s North American session. The market expects an upward revision to 0.8% - still a paltry rate of growth - but slightly better than the initial 0.6% read. If the data surprises to the upside, it may quell some of the doom and gloom forecasts of an imminent recession that dogged the greenback. If, however, the news is even worse than the bears believe, the greenback could come under fresh selling pressure stoking fears that the recession is already here."

Australian Business Investment Rebounds on Demand From China for Iron Ore Australian business investment rebounded in the fourth quarter, after falling the most in eight years, as mining companies such as Rio Tinto Group expanded to meet Chinese demand for iron ore.

Crude Oil Advances on Reports of Production Disruptions in Nigeria, Iraq Crude oil rose to $100 a barrel on reports of a further production loss in Nigeria and that a technical fault is blocking shipments from northern Iraq.

Rogers Says Agricultural Commodities to `Explode,' Led by Sugar, Cotton Jim Rogers, who predicted the start of the commodities rally in 1999, comments on the outlook for sugar, cotton and other commodities.

Check out my new gold and energy blog at MoneyAndMarkets.com

Monday Is Chart Day

Gold Increases in Asia as Negative Real Interest Rates in U.S. Spur Demand Gold rose in Asia after the biggest decline in 11 weeks as negative real interest rates in the U.S. increased demand for the metal as an alternative investment.

Bernanke Ease Makes Bulls Out of Dollar Bears Anticipating Surging Growth Ben S. Bernanke's decision to lower interest rates 1.25 percentage points last month will end the dollar's two-year slide, according to the world's biggest currency traders.

Check out my new gold and energy blog at MoneyAndMarkets.com

Happy Australia Day!

Australian markets are closed because Australia Day was this weekend (if the January 26th holiday occurs on the weekend, everyone gets the following Monday off).

A few points ...

Australia was only settled because of the loss of colonies in North America.

• It's the day that Governor Bligh (of "Mutiny on the Bounty" fame) was arrested by British officers in what became known as the "Rum Rebellion."
• Today, it's a day of festivals, fireworks and boat races.

Happy Australia day! Kiss a sheila for me, mate!

Check out my new gold and energy blog at MoneyAndMarkets.com

Stories and Charts for Friday

And thank ever-lovin' God it's Friday! Man, what a week!

ENERGY

IEA Calls on OPEC to Pump More Crude; Says Stockpiles Still Remain `Tight' OPEC should pump more oil to replenish inventories and ease high prices, while state-owned oil companies must keep up the pace of investment in new capacity, the head of the International Energy Agency said.

GLOBAL ECONOMY

Strong Global Market for Iron Ore is Here to Stay, Rio's CEO Albanese Says Rio Tinto Group, fending off a $114 billion hostile offer from rival mining company BHP Billiton Ltd., said an ``extremely strong'' iron ore market will last, and there's no slowdown in Chinese demand for commodities.

GRAINS – FOOD-POCALYPSE

Argentina's Soybean, Corn Crops May Be Hurt by Dry, Hot Weather in Pampas Argentine soybean and corn crops may further deteriorate as dry, hot weather reduces soil humidity, affecting yields, a weather researcher said.

Corn, Soybeans Gain for Second Day on Speculation Demand Will Increase Corn and soybeans in Chicago rose for a second day on speculation recent price declines, the dollar's weakness and a reduction in freight costs may boost demand from overseas importers. Wheat futures also gained.

China's Buyers Boost Soybean Imports on Drop in Shipping, Commodity Costs China, the world's biggest importer of soybeans, boosted purchases this week after shipping costs and the global benchmark price of the commodity declined, market researcher Shanghai JC Intelligence Co. said.

AUSTRALIA

S&P/ASX 200 Index Jumps Most in a Decade in Biggest Ever Three-Day Rally Australia's S&P/ASX 200 Index rose the most in a decade, completing a three-day rebound sparked by the Federal Reserve's cut to U.S. interest rates and President George W. Bush's plan to revive growth in the world's largest economy.

Check out my new gold and energy blog at MoneyAndMarkets.com

News You Can Use for Thursday

Economy
Economy May Slow Tech Industry's Growth Just a few months ago, IDC was expecting the U.S. tech market to grow 5.5 percent in 2008. The company pushed its estimate down to 3 percent to 4 percent as the mortgage crisis heightened and rising high oil prices enhanced the prospect of a recession next year, IDC senior researcher Frank Gens Sr. said.

Surge in Auto-Loan Delinquencies Is Latest Trouble for the Economy Delinquencies in the auto-loan market are ticking up to their highest level in several years. Lenders are tightening terms in some cases, and interest rates have risen from the rock-bottom levels of a few years ago. About $575 billion in loans for new and used cars are made annually, according to the National Automotive Finance Association.

Bush, Paulson Forge Subprime Accord in Bid to Prolong Faltering Expansion President George W. Bush today will announce a freeze on some subprime mortgages in an effort to stop a wave of foreclosures undoing the six-year expansion.

ENERGY

Crude Oil Falls to Six-Week Low as Fuel Stockpiles Signal Demand Slowdown Crude oil fell to a six-week low on speculation that slower global economic growth may curb fuel consumption.

Study finds that linked wind farms can result in reliable power Wind power, long considered to be as fickle as wind itself, can be groomed to become a steady, dependable source of electricity and delivered at a lower cost than at present.

ASIA

Platinum Jewelry Sales May Increase in China for the First Time Since 2003 China's platinum jewelry sales, the world's biggest, may increase for the first time in four years, driven by rising incomes in the world's fastest-growing major economy, according to Johnson Matthey Plc.

GM Will Invest as Much as $5 Billion in China to Meet Growing Car Demand General Motors Corp., the world's largest automaker, plans to invest as much as $5 billion in China over the next five years to expand its share of the world's fastest-growing major car market.

Australia Cuts Commodity Earnings Forecast a 2nd Time on Currency, Drought Australia, the world's biggest exporter of coal, iron ore and wool, cut its forecast for commodity earnings for a second time this year because of drought and gains in the local currency

Check out my new gold and energy blog at MoneyAndMarkets.com

News you can use ...

Dollar Snaps Two-Day Rally Against Euro as Services Report May Show Slump The dollar snapped a two-day rally against the euro on speculation a U.S. report today will show the slowest services industry growth in six months, adding to signs of a cooling economy.

The dollar: You’d be better off playing Monopoly It’s not really a laughing matter for those on the wrong side of currency trends but a user on longorshortcapital.com has come up with one of those amusing-yet-sobering insights into the direction of the US peso - er, More…

Plunging Pending Home Sales: Really Big News The 6.5 percent drop in August pending home sales is big news. The drop in the index, which measures the number of contracts signed, follows a 10.7 percent drop reported for July. This is a truly extraordinary two-month decline of 16.5 percent. This is a new index (it began in 2000), so it is easily the sharpest fall on record, but it would likely have been the sharpest two month decline in contracts at any point in the post-war era. The actual falloff in sales is likely to be even larger, since a high percentage of these contracts will not close because buyers cannot arrange financing.

XX Sean's note -- this chart, which I found HERE, shows annual existing home sales since 1969 (and inventory levels since 1982). Click on the chart for a larger image.

Australian Retail Sales, Imports Surge, Signaling Higher Interest Rates Australia's retail sales rose twice as much as economists forecast and imports climbed to a record in August, increasing speculation the central bank will raise interest rates from an 11-year high.

Cameco, U3O8 Agree to Form Australian Uranium Venture to Expand Production Cameco Corp., the world's biggest uranium mining company, signed an agreement with Australian explorer U3O8 Ltd. for a joint venture as it seeks to start producing the radioactive metal in the country.

Check out my new gold and energy blog at MoneyAndMarkets.com

News You Can Use for Sunday

U.S. Economic Slowdown Confirms IMF Growth Forecast, Kato Says

May 6 (Bloomberg) -- The slowest U.S. growth in four years in the first quarter confirmed the International Monetary Fund's below-consensus forecast, a deputy chief at the Fund said.

``Our 2.2 percent estimate for U.S. growth this year was already lower than the consensus, so the recent data is pretty much in-line with our expectations,'' Deputy Managing Director Takatoshi Kato said in an interview today in Kyoto. ``We still expect U.S. growth to recover into next year after the housing market picks up.''

Islamic Bond Fatwas Surge on Million-Dollar Scholars (Update1)

Banks can't find enough scholars steeped in the teachings of Muhammad to accommodate the demand for new bonds that conform to Shariah law. Without men like Yaquby to bless the borrowings, none of the $70 billion of Islamic debt outstanding can be traded and companies would have been unable to sell any of the $17 billion new offerings last year, according to data compiled by Standard & Poor's and Bloomberg.

BHP Billiton, Worth $201 Billion, May Lure Buyout Offers, Merrill Says

BHP Billiton Ltd., the world's biggest mining company, could be stripped and sold for $201 billion to provide a 34 percent return to any private equity groups that make a takeover bid, according to Merrill Lynch & Co

U.S. Gasoline Pump Prices Climb Above $3 a Gallon for Third Year, AAA Says

Gasoline in the U.S. climbed above $3 a gallon at the pump for the third straight year as higher prices fail to change driving habits and demand keeps growing.

Nymex Gas Is Steady Close to Five-Month High Amid Summer Supply Concerns

Natural gas was little changed in New York after reaching the highest price in five months amid speculation that hot weather will drive demand and hurricanes will disrupt supplies this summer.

Nickel Rises to Record on Speculation Exports May Be Disrupted; Lead Gains

Nickel advanced to a record in London on speculation measures taken by the state government of Western Australia to detect pollution will disrupt shipments. Lead also rose to its highest ever and copper traded at an 11-month high.

Canada Mints 200-Pound, Solid-Gold Coin

Got change for a million? Canada does: the world's biggest pure gold coin at 200 pounds. Already, three buyers have shelled out for one of the 1 million Canadian dollar coins introduced last week.

Check out my new gold and energy blog at MoneyAndMarkets.com

China's Tiger Starts to Scare People

China's gross domestic product (GDP) grew 11.1% in the first quarter -- blowing past estimates. It's also 0.7% higher than year-ago levels. What's more, the Consumer Price Index, a gauge of inflation, climbed 3.3 percent in March versus a central bank target of 3% for 2007. That's the highest inflation rate in more than two years.

Investors reacted by selling EVERYTHING. Shanghai's index dropped by nearly 5%. Australia's stocks fell by 1.2%. Why are investors selling when things are going so well? They fear that too-hot growth and higher inflation will make Bejing take steps to cool off the economy. Ri-i-i-i-ight!

I believe that if China was going to take serious steps to cool off its economy -- as opposed to jawboning and windowdressing, like it has been doing -- it would already have done so. I also believe China doesn't want to upset the applecart before Beijing hosts the Olympics in 2008.

So what does this make this sell-off, as a tidal wave of red roars around the globe? You guessed it -- buying opportunity.

Let's look at a chart of the FXI, one of the China ETFs ...
I'm not saying this is guaranteed -- nothing is. But history tends to rhyme, as they say.

Indeed, if one were going to "Profit from China Megatrends," (nudge-nudge), this would be a good time to get started.

Check out my new gold and energy blog at MoneyAndMarkets.com

Sounds Pretty Darned Bullish for Uranium

This isn't unexpected, but final Q1 production numbers for Australia's Ranger Mine are in, and that flood sank their output ...

Energy Resources Says Uranium Output Declines 28%

April 16 (Bloomberg) -- Energy Resources of Australia Ltd., which produces more than a 10th of the world's uranium supply, said production of the fuel fell 28 percent in the first quarter from a year ago, due to heavy rain.

Output dropped to 1,006 tons for the three months ended March 31, Darwin-based Energy Resources said today in a statement to the Australian Stock Exchange. The company maintained its April 2 forecast that production will fall next year as high water levels restrict access into 2008.

Check out my new gold and energy blog at MoneyAndMarkets.com

Another Australian Stock Rocket Blasts Off!

Those Australian stocks keep rocketing. Here’s the latest example from our Red-Hot Asian Tigers portfolio.

This stock is a gold miner with operations in a Southeast Asian country (RHAT subscribers, you know the one). It just received environmental approval for its gold project. ZOOM!

Check out my new gold and energy blog at MoneyAndMarkets.com

Interesting Resource Headlines This Morning

Is is just me, or is the news on commodities especially bullish lately? And remember, this comes on the heels of doom-and-gloom forecasts made just last week! Check out some of these headlines...

Gold Climbs a Third Day as Dollar's Gain Spurs Investor Demand
``We're all trading the dollar-yen,'' said John Reade, head of metals strategy at UBS Investment Bank in London. ``It shows people are more friendly to riskier assets, and therefore people at the margin are buying a little bit of gold.''

Nickel Climbs to Record on Shortage Outlook; Tin, Copper Gain
Nickel advanced to a record for a second day, leading gains in London, on expectations dwindling stockpiles will create a second year of shortages. Copper and tin rose for a third day.
Increasing demand for industrial metals has left mining companies struggling to fill a supply gap, causing inventories to shrink. Nickel stockpiles monitored by the London Metal Exchange have plunged 90 percent in the past year and those of tin have fallen 34 percent.

Chinese Demand May Boost Iron Prices, Citigroup Says, Reversing Prediction
Iron ore contract prices may rise 7 percent next year, rather than decline as expected, due to stronger-than-expected Chinese demand, said Citigroup Inc. Chinese steelmakers, the world's largest producers, may import 4.3 percent more of the steelmaking ingredient in 2007, and 7.4 percent in 2008, said Alan Heap, an analyst at the world's largest financial firm, in a March 6 report. Heap earlier predicted ore prices could fall 20 percent next year

Bank of China starts gold option trading in Jiangsu
SHANGHAI - The Bank of China will launch gold trading options this month for individual investors in Jiangsu, to aid in the control of losses due to fluctuations in the spot gold market, state-media Xinhua news agency reported on Saturday.

Australia Commodity Sales May Rise to Record on China
Commodity exports from Australia, the world's biggest shipper of coal, iron ore and wool, may rise to a record for a fourth straight year as Chinese demand pushes up prices and volumes, and agriculture recovers from a drought. Sales will reach A$148 billion ($115 billion) in the year ending June 30, 2008, the Australian Bureau of Agricultural and Resource Economics said today. Earnings will be A$138 billion this fiscal year, the Canberra-based forecaster said.

TSX Group Announces Global Mining Index
TSX Group and Standard & Poor’s, the leading global provider of independent research, ratings and indices, today announced plans to create the S&P/TSX* Global Mining Index. Similar to the S&P/TSX Global Gold Index but with a broader scope in terms of the types of miners to be included, the Global Mining Index will track leading international mining issuers. The exposure to this index will help further recognize the value of listing on Toronto Stock Exchange. In addition to bringing additional liquidity to mining listed issuers, it is expected structured products will also be created to serve investors in the markets.

Brakes on uranium price
THE uranium price is expected to peak about $US103 per pound next year as world production starts to catch up with demand. The Australian Bureau of Agricultural and Resource Economics's March quarter Australian Commodities report, released yesterday, said despite a substantial increase in global uranium mine production this year, the spot uranium price was expected to keep appreciating, averaging more than $US94.20 ($A121.69) per pound in 2007, compared with $US85 now.

XX Sean's note -- That last one is odd. All the news is bullish yet they find the most bearish slant they can. Well, we've seen tops called in the uranium market before. And the top they're calling is 21% higher than uranium is now, LOL! Let's see how it goes, shall we?

Check out my new gold and energy blog at MoneyAndMarkets.com

Asian Stock Tsunami Update

When I went to bed around midnight last night, Asian stocks looked pretty bleak. But we've seen some pretty good bounces this morning. We aren't out of the woods yet, but here are some stories ...

Shanghai Shares Rebound Nearly 4 Percent; China Says No Plans to Tax Capital Gains

SHANGHAI, China (AP) -- Chinese stocks recovered Wednesday following their worst plunge in a decade as regulators shifted into damage control, denying rumors of plans for a 20 percent capital gains tax on stock investments.

The Shanghai Composite Index gained 3.9 percent to 2,881.07 after opening 1.3 percent lower. On Tuesday, it tumbled 8.8 percent, its largest decline since Feb. 18, 1997.

XX However, not all the news is good, as the story goes on to say ...

Markets across Asia were still rattled, with many falling for a second day. Japan's benchmark Nikkei Index sank 2.85 percent, while stocks in the Philippines tumbled 7.9 percent. Malaysian shares fell 3.3 percent, while Hong Kong's market fell 2.5 percent.

XX And here is a story on how China is NOT planning a big capital gains tax -- apparently, that was fuel for the spark of yesterday's selling.

Report: China not planning big capital gains tax

XX Now, let's look at some charts of Asian stocks of interest ...

Again, this doesn't mean we're out of the woods. But commodity-heavy Australia seems to be bearing up better than financials-focused Japan. Stay tuned for more updates. Good luck, and good trades.

Check out my new gold and energy blog at MoneyAndMarkets.com

Red-Hot Resources: We Have Ignition!

If you're a subscriber to Red-Hot Asian Tigers, it's a very good morning for you. I've recommended Summit Resources twice in Red-Hot Asian Tigers the last two weeks, and you should have been able to buy it at least one of those times. And look at it now ...

You can read about the takeover bid by CLICKING HERE. The upshot for Red-Hot Asian Tiger subscribers is, for every 1,000 shares you had of Summit, you just racked up about $1,000 in open gains. That's before commissions, and open gains aren't profits until you book 'em. Still, not bad for a couple weeks!

Now, should you bank those gains now? Should you hold? Or is this a good time to buy more shares of Summit? I'm afraid my opinions on those subjects are for Red-Hot Asian Tigers subscribers only. Look for an issue today or tomorrow.


Meanwhile, Red-Hot Canadian Small-Caps subscribers shouldn't feel left out. You have huge gains on one uranium stock and over 23% n the other one we added just about two weeks ago.


PLUS, the news about Summit sent other small-cap uranium companies soaring in Australia. The same thing will probably happen in Canada.


And we aren't even close to the end of the wild, bullish story on uranium. In fact, if anything, we're at the beginning of the end of the first chapter of the Big Uranium Bull Market.


Hey, remember that Ugly Duckling I talked about in a recent Money and Markets -- the only stock in my Small Uranium Wonders report that hadn't left the launch pad yet. Well, check out its chart including Monday's rip-roaring action ...


It sure looks like it is breaking out to me. Good thing I recommended subscribers buy another 800 shares of this one on Friday! But is it too late to buy this or the other stocks in Small Uranium Wonders? No! Hell, no! I can't emphasize enough, we're at the beginning of the end of the first chapter of the Big Uranium Bull Market. I believe there is much, much more to come.


If you don't have Small Uranium Wonders yet, call 800-400-6916 and get it now.

Check out my new gold and energy blog at MoneyAndMarkets.com

Meanwhile, Mining Boom in Australia Goes Full Throttle

Boom drives mineral exploration to 30-year high

MINERAL exploration has hit a 30-year high, with miners scrambling to take advantage of a resources boom that is propping up the national economy.

More than $1.2 billion was spent on mineral exploration in 2005-06, double what the industry spent in 2001-02.

Read the rest by CLICKING HERE. Basically, Australian Mining is a boom town. Western Australia is at a fever pitch, raking in fully half of all exploration money spent in Australia. Spending on uranium exploration has increased five-fold from 2001-2002, to $56.1 millionn from $8.7 million.

Check out my new gold and energy blog at MoneyAndMarkets.com

China's White-Hot Hunger for Australian Uranium

China plans to import 2,500 metric tonnes of Australian uranium per year by 2020. That's the bullish news. The really bullish news is that should only be a third of China's expected annual demand of 7,500 metric tonnes.

Australian uranium stocks have taken a pounding recently. News like this should provide a boost.

Read the rest HERE.

Check out my new gold and energy blog at MoneyAndMarkets.com

Charts for today

I am swamped today, so here are some charts to look at. Red-Hot Canadian Small-Caps and Red-Hot Asian Tigers subs take note -- I'm showing a stock for each service that you already hold...

First, let's look at crude. Not so bullish.

The bounce today isn't very convincing. On the other hand, look at the volume -- we're seeing big selling by funds, particularly hedge funds. You know they all run to one side of the boat at once. That unbalances any market, but it also helps us find bottoms (and tops).


Now for the next chart. It's interesting to see how the Australian market broke away from the S&P 500 in late December, but has come back to Earth hard. Today was a very bullish day in Australia. We'll see if we have follow-through.


RCS subs should know that Forsys Metals, my latest uranium pick, pulled back and got you filled on Friday, then took off like a rocket. Note the rising triangle -- bullish!
And here is one for RHAT subs. Check out the bullish action in Sino Gold! Your whole portfolio had a very bullish day.


But who knows what tomorrow will bring for either service. Stay tuned!

Check out my new gold and energy blog at MoneyAndMarkets.com

Emerging Market Mania

Bloomberg tells us today...

Emerging-market stocks may lead global equity returns for a sixth straight year because consumers from China to Brazil are becoming wealthy enough to propel economic growth even as demand for their exports slows.

Investors are targeting telephone companies and banks to profit from growing domestic spending after Chinese wages doubled during the past five years, Brazil's interest rates tumbled to the lowest in two decades and loans from Indian banks jumped 35 percent in the past two years.

Some factoids from the story...

• In China, per-capita disposable incomes in towns and cities, where more than 500 million people live, rose 10 percent in the first nine months of 2006 from a year earlier. In India, the number of households earning an annual income of at least $10,000 is rising more than 20 percent a year, according to consultants McKinsey & Co. in New York.
• Corporate and consumer lending in India has expanded more than a third in the last two fiscal years.
• An MSCI index of food and beverage stocks in China soared 89 percent in 2006. A gauge of companies in India that make cars and other big-ticket items jumped 39 percent. In the U.S., by comparison, Procter & Gamble Co., the world's biggest consumer products company, rose 12 percent.

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Bloomberg is picking up on the theme I wrote about in last week's Money and Markets, "Using International ETFs in 2007." In that article, I said: "For my money, the real outperforming countries are those in emerging markets — places outside the G-10 group of developed nations. That shouldn’t come as a surprise to subscribers of my Red-Hot Asian Tigers service. We’re already seeing big gains on stocks that operate around the Pacific Rim."

Investing overseas is potentially very lucrative, but it's best done with professional advice, because those markets can be brutal. If you're going to do it with ETFs, you might want to check out my report, “ETFs Made Easy.”

Check out my new gold and energy blog at MoneyAndMarkets.com