Market Report: The Most Lucrative Trading Tactic I Know

Earlier this afternoon, Taipan Founder J. Christoph Amberger issued a special alert to his Taipan members entitled “Profiting From the Chinese Bubble.”

In this missive, J.C.A. writes one of the most important pieces of advice you’ll hear all year: “Of course there’s a bubble forming in China. But bubbles are great times to make profits!”

I couldn’t agree more.

In fact, one of the most lucrative trading tactics that I know surrounds something I call “The Google Syndrome.” You see, back when GOOG IPOed at $85 per share and quickly shot up to $200, many investors thought that they had missed the boat. In fact, I received numerous e-mails reading, “Bryan, GOOG is moving up too far, too fast. Do you think it’s time to buy GOOG puts?”

My response was simple: “No.”

After all, when you have a stock with such incredible upside momentum, you do not fight against those tailwinds. You’ll lose every single time.

So my advice on GOOG was this: “Continue playing calls (or buying the stock) until the market tells you that it’s time to stop.”

And make no mistake, three years after making these comments, the market has still not told me to stop. As I write, GOOG is trading for $625 per share. That $200 entry point sure looks good about now, wouldn’t you say?

So today, I’d like to echo Christoph’s comments and apply this same trading principle to the Chinese market. You see, when it comes to China, the bears are out in full force right now, saying that the Chinese market is overheated and due for a correction. And if you look at the FXI, it’s easy to see why.

As Christoph wrote earlier today, “The Shanghai Stock Exchange is spitting out profits like a popcorn machine, doubling and then doubling again within less than two years.”

All logical signs point to a Chinese-based correction. And it’ll probably happen eventually. But until then, there are remarkable profits to be made, and you’ll want to be part of the action. So just like GOOG, the best trading tactic that I can offer you is to continue playing these rocket-ship Chinese plays to the upside. Do it until the market tells you to stop (via a 10% or greater correction in one day).

Notably, here are four of these plays that you should consider:

PetroChina (PTR: NYSE): Up $24 in intra-day trading
Aluminum Corp. of China (ACH: NYSE): Up $10 in intra-day trading
China Mobile Limited (CHL: NYSE): Up $8 in intra-day trading
Huaneng Power International (HNP: NYSE): Up $4 in intra-day trading

Bryan