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In early September of this year I wrote this post alerting you to the distinct possibility of the China market putting in a major bottoming pattern. Well, it took some weeks to materialize, but China has, indeed, breached the neckline of the inverted head and shoulders bottom that it began to form in late May. Keep in mind that the China markets have not come close to hitting their highs from July of 2009. They have been bottoming and topping out before the S&P 500, based on the what I have seen over the past few years.

Hence, noted China bears such as Jim Chanos and Hugh Hendry may need to wait a bit longer before (and endure more pain) before they are proven correct. As you can see on the updated daily chart of the Shanghai Composite, a measured move from the inverted head and shoulders bottom leads us to at least 3,000. It will not be a straight line higher, most likely. Thus, I believe all dips in the China and China-related stocks should be bought.

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I am not doing bold selling here, but I am performing some cosmetic surgery to my portfolio, locking in profits here and there. I made the following trades:

• I sold 1/4 more of my $ATPG. I now have a 1/2 position left.
• I sold 1/4 of my $HMIN position. I have 3/4 left.
• I sold 1/4 more of my $WYNN position. I have 1/2 left.

All trades are timestamped inside The PPT.

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TOTAL PORTFOLIO:

EQUITIES/ETF’s: 56%

• LONG: 56% ($ATPG $CSTR $GS $HMIN $MSTR $RGS $SHLD $TIE $WPRT $WYNN)

CASH: 44%

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Thus far today, I made the following trades:

• I bought a full position in $WPRT
• I sold out of $DZZ for a loss.
• I sold out of $CRZO, taking profits.

All trades are timestamped inside The PPT.

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TOTAL PORTFOLIO:

EQUITIES/ETF’s: 62%

• LONG: 62% ($ATPG $CSTR $GS $HMIN $MSTR $RGS $SHLD $TIE $WPRT $WYNN)

CASH: 38%

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I took off 1/4 of both my of $ATPG and $WYNN positions. They are both huge winners for me, and seeing as they are green again today after yesterday’s 8%+ moves higher in both of them, I believe it is best to lock in some profits. I still believe both stocks are eventually going much higher.

All trades are timestamped in The PPT.

NOTE: I will be out for the rest of today.

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TOTAL PORTFOLIO:

EQUITIES/ETF’s: 68%

• LONG: 62% ($ATPG $CRZO $CSTR $GS $HMIN $MSTR $RGS $SHLD $TIE $WYNN)
• SHORT: 6% ( long $DZZ)

CASH: 32%

Long 1/2 starter in $SHLD, as charted and profiled in my setups last night.

All trades are timestamped inside The PPT.

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TOTAL PORTFOLIO:

EQUITIES/ETF’s: 72%

• LONG: 66% ($ATPG $CRZO $CSTR $GS $HMIN $MSTR $RGS $SHLD $TIE $WYNN)
• SHORT: 6% ( long $DZZ)

CASH: 28%

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I bought a full position in $RGS, based on the chart below.

All trades are timestamped inside The PPT.

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TOTAL PORTFOLIO:

EQUITIES/ETF’s: 68%

• LONG: 62% ($ATPG $CRZO $CSTR $GS $HMIN $MSTR $RGS $TIE $WYNN)
• SHORT: 6% ( long $DZZ)

CASH: 32%