Christian A. DeHaemer - Angel Publishing

The Mongolia Coal Mining Boom

When I was a young high school punk, I had the good fortune of attending Jim Peckham's wrestling camp. Coach Peckham was the 1976 USA Olympic wrestling coach. He had cauliflower ears and a face that looked like he chased parked cars. He was a certifiable badass and left a lifelong impression.

Peckham taught me three things:

You have to "earn the right to win," meaning you must work harder than your opponent works or you don't deserve victory. This alludes to the deeper meaning that even inalienable rights must be earned.
Wrestling is the world's oldest martial art; the caveman that put his fellow man on the ground was the one eating the deer or getting the cavewoman.
There are two great wrestling countries in the world: Iran and Mongolia.

In Iran, they fight until the loser "turns his face towards the sun, the moon, or the stars."

And in Mongolia, they've fought a massive tournament every summer for more than 800 years, going back to the armies of the world's greatest warrior, Chinggis Khan.

94% Success Rate Since February 2009

Since February 2009, we've closed 35 trades in Pure Asset Trader.

Of those, 33 were winners with only 2 losers. Do the math - that's a winning percentage of 94%. And every trade - even including the losers - is averaging +40%... meaning Pure Asset Trader is nearly doubling money every 2 trades! Isn't it time you made similar gains?

Click here for more.

National Hero

When I first met Dolgorsürengiin "Slippery" Sumiyabazar at the Mongolian BBQ in downtown Ulaanbaatar, I took notice. He had Peckham's mashed-up ears and a game face that said he could take your head off.

Sumiya is a national hero. He won the traditional wrestling tournament in 2006 after finishing second for a number of years and is also Chairman of the Board for the National Investment Bank of Mongolia (NIBM), in addition to being an elected member of the city council and in charge of the budget committee.

In other words, he has accomplished more than most.

Modern Mongolia

The Mongolian BBQ is a modern restaurant, popular with foreigners as well as locals. When I sat down, I couldn't help but notice that the 2004 wrestling tournament was playing on the flat screen TV over his shoulder. He turned around and said, "2004 was unlucky for me."

We waited about 15 minutes as the sword-wielding chef cooked up our choice of local grass-fed, free-range beef, sheep, goat, and horse, fried with vegetables. The choices included beef tongue and fatty lamb tail.

It was around the time we were digging into our plates when Sumiya showed up on TV. So I was looking at the man at the table, and looking at him again over his shoulder.

My host, the CEO of NIBM who goes by Bayar, pointed and said, "That is him!" Soon the entire restaurant of thirty or forty people was watching.

The Sumiya sitting at our table waved it off... a bit embarrassed perhaps.

Meanwhile, the Sumiya on TV in 2004 spun and executed a hip throw which launched both huge men through the air. They crashed down on the dusty Asian steppe with a lung-collapsing drop. And Sumiya was dancing the arm waving strut of the victor.

The crowd at the restaurant cheered and pointed. I asked Bayar if he had arranged this, and he laughed and said, "Maybe... maybe."

But much to my disappointment, Sumiya didn't want to talk about wrestling. He wanted to talk about the budget, which is increasing from $2 billion togrog to $6 billion togrog. He wanted to talk about the new airport and the US$997 million he was spending to refurbish the old Soviet roads. He wanted to talk about the future.

World's Largest Gold Mine

Sumiya told me the Oyu Tolgoi gold mine (O.T.) is what everyone is talking about, but it is just the beginning. For those who don't know, O.T. is the world's largest gold and copper mine by square miles and the fourth-largest by proven reserves.

Ivanhoe Mines and Rio Tinto just signed a deal with the Mongolian Government worth between US$4 and $6 billion. This deal was possible because the newly elected government just cut taxes from 68% to a 30% ownership stake.

This deal has opened the floodgates for direct foreign investment in resource-rich Mongolia.

But as Sumiya told me, it is just the start. Mongolia is landlocked between China and Russia... and this is a benefit. The government catch phrase is Mongolia is land-linked. China needs resources and Mongolia has them... and Russia has needs, too.

Great Business Climate

Mongolia's business climate is so good right now, a start-up nanotech company named Wisdom Assets moved there from London to take advantage of the low taxes. The regular income and corporate tax is now a staggeringly low 10%. Wisdom Assets is a group of scientists with more than 22 patents, including some that use snake venom to thin blood.

The NIBM is acting as a consultant with a number of companies that are setting up shop in Mongolia.

Caption: Christian DeHaemer, Orgilmaa Silzkhuu - Board Secretary and head Lawyer, and Bayarsaikhan "Bayar" Banzragch - CEO National Investment Bank of Mongolia, having drinks at the Chinggas Khan Irish Pub in UB.

One of the projects is a deal to build a $500 million real estate complex in downtown UB. The project will be built to world-class standards by a South Korean company. It will include a hotel, condos, and a shopping mall. It is being billed as a 'green building,' with solar panels and other environmental attributes.

Dolgorsürengiin "The Blue Wolf" Serjbüdee, Sumiya's brother, is heading up the project. He was a renowned K-1 fighter in Japan; K-1 is similar to mixed martial arts in the U.S.

Caption: Dolgorsürengiin "The Blue Wolf" Serjbüdee - Sumiya's brother and former professional K-1 fighter in Japan, future real estate mogul. Another brother, Dagvadorj, is the 68th Yokozuna of professional Japanese sumo wrestling, and one of only two currently in the world.

45 More Mines Pending

I had spoken earlier with Altanbaatar Chuluunbaatar, Head of Registration and Service Division at the Geological & Mining Cadastre Department. He was among the government people who negotiated the O.T. deal.

Mongolia has vast reserves of high-quality coal and is lucky to share a border with the largest coal consumer in the world. This makes Mongolia a major force in the global coal market. Mongolia will play a growing role in powering China's heavy industries and electric coal-fired generators.

Altanbaatar told me that right behind O.T. is Tavan Tolgio (called T.T.), a huge coal deal between the state-owned Mongolia coal company and a short list of bidders.

T.T. is a coal mine located 40 kilometers from the Chinese boarder and in close proximity to a rail line. With 6.5 billion tons of coal, T.T. is said to be the largest undeveloped coal deposit in the world.

The short list of bidders for the coal project includes BHP Billiton (BHP), Vale S.A. (VALE), Peabody Energy Corp. (BTU), India's Jindal, and China Shenhua Energy Co. Ltd. (1088.HK).

Multiply Your Money by TEN with Gold

The biggest gold rush in history is right around the corner. And it could push gold prices to over $5,000 an ounce!

Fortunately, there's a new investment vehicle on the market that doubles the daily profits of gold. And it could turn every dollar invested into TEN!

To learn more about this incredible opportunity, click here.

Tom Albanese, CEO of Rio Tinto, says of the supply in this part of the world: "Coal from Mongolia to China is happening. It is expanding, probably doubling every two years."

And Mongolia also has vast hoards of uranium, copper, and rare earth minerals. Altanbaatar told me that there are 15 known resource deposits that may be equal to O.T. and T.T. There are another 30 that have been explored by the Soviets, but not by modern seismic equipment. These may also be major fields.

As I write this, a government report on these potential mines is being translated for me from Mongolian to English. Soon I will have the only English translation of these vast resources...

It is still early in the game, but word is leaking. I just heard an analyst on Bloomberg talking about the Mongolian mineral boom... though he was recommending the $90 billion Rio Tinto, whose Mongolian assets are maybe 3%.

First on the Ground

I was told by more than one person that I was the first foreign journalist that they had talked with, and therefore they rolled out the red carpet. I was lucky enough to have tremendous access to major players. A year from now... everything will be different.

After talking with government officials, the major players in the investment bank, the owner of the largest brokerage in Mongolia, head of the Mongolian Stock Exchange, and interviewing about seven CEOs... I probably know more about the Mongolian opportunities than all but a handful of other foreigners.

I am analyzing the information for the best way to play the coming investment boom. There are companies that trade in New York, London, Toronto, and Hong Kong that will surge. There are also a few on the Mongolian Stock Exchange with tremendous value — including one that trades with a P/E of one.

The timing couldn't be better. The next two years will see tremendous growth.

Commodities will be where the money is on the horizon. I believe this, and my colleague Ian Cooper has been telling readers this very thing for some time now, too. In fact, his latest rare earth metals play is shaping up to be wildly profitable...

I greatly admire these young, hungry Mongolian businessmen. There are few places with more opportunity. To be young, educated, and a native Mongolian is, at this time, to be on the precipice of greatness.

You should come along for the ride. Look for my free report in your inbox on January 1, 2010.

Until next time,

Christian DeHaemer

Energy and Capital

(and soon-to-be-launched Crisis and Opportunity)

Have You Heard of the Conference of Parties?

Only a few have. But those in the know are already turning tidy profits.

The Conference of Parties -- better known as COP-15 -- is a clandestine meeting attended by leaders from 192 countries.

Their goal: to map the world's economic trajectory for the next 50 years.

Those familiar with COP-15 are already aligning their portfolios accordingly. Click here to learn what the meeting's all about, how it will alter the investment world, and how you can get ahead of the profit curve.

Mongolia's Gold Mining Rush

Editor's Note: This article originally appeared in Wealth Daily with an article about by Steve Christ on Nov. 5, 2009.

———

The price of gold hit an all-time high yesterday with the announcement that India has recently bought 6.7 billion dollars worth of the heavy metal from the International Monetary Fund (IMF). As I write this, gold is a few dollars short of $1,100 an ounce.

Now, $6.7 billion is equal to a month's worth of U.S. military operations in Iraq, and doesn't even come close to any of the bailout packages awarded to U.S. financial institutions... but it was enough to purchase half of the total amount the IMF is selling this year. And $6.7bil is more than pocket change for India...

According to Yahoo Finance:

The sale to India was nearly half the 403.3 tonnes of gold that the IMF has targeted for sale over the coming years... The Washington-based IMF, which currently holds 3,217 tonnes of gold, is the third-largest official holder of the precious metal after the United States and Germany. India is the world's biggest consumer of gold, importing between 700 and 800 tonnes of the metal every year or 20 percent of global demand.

India's Initiative: A Bellwether for Government Gold Buying?

The amount of money that India's central bank spent on gold is not as significant as the fact that they bought gold at all.

For the past fifteen years, major governments like France, Russia, and Germany have been selling gold on the open market. This has obviously had a bearish effect on the price of gold.

This year, not only are none of the major holders of gold selling the metal, but up-and-coming countries like India and China are buying it. China recently reported that it was doubling its gold reserves to 1,054 tonnes.

Both of these countries are selling U.S. Dollars and buying hard assets. They simply believe that the dollar will continue to fall. The fact that the Fed announced today that they would hold the Fed Rate to 0.25% for the foreseeable future backs their argument.

Last week, I told you about a "double top" in the Russell 2000 and that you should buy puts on the corresponding iShare (NYSE: IWM). Those puts surged 59% the next day.

Today I'd like to take a look at the ten-year gold chart...

Pent-up Energy in Gold

I've circled patterns on the ten-year gold chart above. These patterns are called "coiled springs." The thinking is this: markets tend to go from trading for long periods of time in tight ranges. This is interrupted by massive breakouts. Sideways markets build energy like a weight on a coiled spring; when the weight is removed, the spring leaps forward.

The chart shows that after each sideways period (lasting roughly two years), the price of gold jumped an amount equal to that which it went sideways. This would suggest that this rally is going to push gold to $1,450 to $1500 an ounce.

And that's just for starters... I personally believe that the next liquidity-fueled bubble market will be in gold and other hard assets.

One of the most obvious ways to play this surge in gold prices is to buy junior gold miners — and I've been recommending those all year, to my readers' good fortune.

Go Down Stream

Another way to play the new gold boom is to buy companies that help miners mine the yellow metal.

You may not be aware of it, but there is a new gold mine in Mongolia. In fact, it is the world's largest — a mine bigger than the state of Ohio!

The spending on this mine will double the GDP of Mongolia. That's right — double... which means Mongolia will become to Central Asian minerals what Dubai is to Middle Eastern oil.

This boom all stems from a recent government corporate tax cut from a draconian 68% to a more modest 30% of profits.
And this is just the first deal. Mongolia is rich in mineral wealth. The floodgates have been thrown open.

This coming gold rush in Mongolia will flood the country with cash. Early investors will literally make their fortunes.

That's why I'm getting on a 26-hour flight this coming Monday — and braving the cold (the high on Sunday was 13°F), to find out the best way to play it. I've arranged to meet with the largest broker in Ulaanbaator and some well-connected ministers and politicians.

Believe me... my date book is stuffed with tours and meetings. I will be doing my due diligence with my boots on the ground. Look for my report in your inbox on January 1, 2010.

Stay tuned for more next week,

Christian DeHaemer
Editor, Wealth Daily
(and soon-to-be-launched Crisis and Opportunity)

The Mongolia Mining Boom

I wasn't sure what to expect when my plane landed at the Genghis Khan International Airport.

It was midnight. The pilot informed us of the local temperature: a bitter cold -5 degrees. The airport resembled an old Soviet-style bunker and reminded me of similar buildings in ex-Communist countries like Bulgaria.

I overpaid for the first taxi; the driver pestered me and I settled on a price that was more than I should have paid, but he drove the 15-minute trip from the airport.

The air was heavy with pollution that came from the gur (yurt) village.

People still live in traditional nomadic structures and they burn wood and cow pies and the like. On this night, everyone had a fire going.

The roads were full of potholes. Most lights were off. The buildings I saw as I drove into Ulaanbaatar (or UB, as everyone here calls it), were of the former Soviet-style apartments. More of these ugly grey buildings have been built in the world than any other — that I'm sure of.

Win Big When the Next Domino Tumbles

First there was housing... then the banks. And after that it was the automakers that came crashing down. Next up is a Commercial Real Estate Crash.

And unfortunately - just like the rest of them - the government's last-ditch efforts to prop up this domino are all doomed to fail.

But a 372-year-old investing technique is the answer to it all. And it might not only save your portfolio during this $1 trillion crisis... but also make you a fortune!

To learn more about this moneymaking opportunity click here.

My hotel, in comparison, is a top-notch four-star establishment. For $170 a night, I get a place to lay my head, including daily breakfast with eggs to order and thick black coffee.

I hadn't yet heard from my contact from the National Investment Bank of Mongolia, and so I have to be honest. . . I spent some time biting my nails during my flight to Asia. I was worried that I had annoyed Mr. Bayarsaikhan Banzragch, the CEO of the only investment bank in Mongolia. . .

But it turns out he was in Japan on business and had just returned.

Bayar, as he is known, and his lawyer Mrs. Orgilmaa Siizkhuu took me under their wing and gave me access to the Head of the Stock Exchange, the Vice Governor at the Bank of Mongolia (their central bank), and a regional head at the Mineral, Resources and Petroleum Authority of Mongolia.

I also interviewed the man who is building a world class city called Luminu City with a budget of $500 million. It will be a green city (it is always sunny in Mongolia), with solar panels, a 45-foot office tower, shops, and condos. He told me he is "building a second Dubai in the heart of Asia. . . "

And I almost believed him. I'll tell you more about those meetings later. . .

First, I want to point out an article I wrote recently about the commodities boom in Mongolia — gaining momentum then, as I wrote the article, and today, as I type these words from my hotel room — and the significance of the political takeover by the Moderate Social Democratic Party last year.

The contextual significance of Mongolia's political state and the commodities boom is important in understanding just what is on the horizon in regards to the vast fortunes that can be made by this opportunity, as I explained in my last piece:

Untouched for 19 years, the world's last great energy, metal, and mineral boom is about to launch in Mongolia. In fact it's already happening. A new tax law has recently changed the business climate, and the likes of Goldman Sachs, China Wealth Fund, Rio Tinto, and many other big players are rushing through the gates. . .

For the better part of a century, Mongolia has been known for its wealth of minerals: gold, coal, rare earth metals. Heck, the Russians had the whole place mapped out in the 1960s.

But under Russia, very little extraction ever took place. In the early 1990s, Mongolia finally broke free from its status as a Soviet puppet state and the country reacted like many former Russian states: It whipsawed from corrupt renegade capitalism back to its former communist party rulers and a collective mentality.

But neither of these systems was conducive to the massive capital inflows necessary to fund long-term gold, copper, and coal mines.

And as a result, during the commodity boom era of the 2000s, Mongolia was taken over by the anti-capitalists and strict laws were made placing punitive taxes on foreign companies after Mongolia's mineral wealth.

Then last year, the Moderate Social Democratic Party took power. This new group had a pragmatic approach to economics and political ideology. One of the first things those in power did was to cut the corporate tax from 68% to 30%. I bought one small gold miner in anticipation of this new law. . .

It is now up more than 458%.

To give you some perspective, the square footage of this mining property is bigger than the state of Ohio. And the $6 billion investment — coupled with the expansion of the economy — will easily double Mongolia's $9 billion GDP.

But it wasn't long after the plane touched down that I realized there were some things I didn't know when I wrote my article about mining in Mongolia: Mongolia isn't some warmed-over former Soviet state. These people were hard-working, smart, and aware of the fact that their future is very promising.

If I can generalize a population, they remind me of the people I've met from the Western High Plains states, like Colorado and Wyoming. They are a proud, horse-and-mountain people with a long history. After all, one of their ancestors once ruled the world.

They are Buddhists who care very much about the environment and their place among generations. When I mention the amount of gold and uranium their country has, they gratefully attribute from whence they came with the response, "Thank the ancestors."

The feeling I get on the ground is one of controlled optimism.

Mongolia's people are going to meet the future peacefully, with every intention not to mess with the balance of their present-day lives.

I'll keep you informed on my adventures and on-the-scenes discoveries in the weeks to come.

More later,

Christian DeHaemer

Wealth Daily

19 Straight Closed Winners since January 2009

Our research team has helped our readers pile up some serious gains this year.

In 2009 alone, we've closed 19 profitable positions - a winner every two weeks, including 195% and
153% gains on one play.

And that's just a taste of the gains readers are taking on our wildly profitable Bakken plays... and one area that could provide the U.S. with up to nine billion barrels of oil the Saudis can't touch.

Simply click here to get started.

Mongolia Mining

The commodity boom in Mongolia is just getting started. Vast fortunes will be made. Yours could be one of them. . .

Untouched for 19 years, the world's last great energy, metal, and mineral boom is about to launch in Mongolia. In fact it's already happening. A new tax law has recently changed the business climate, and the likes of Goldman Sachs, China Wealth Fund, Rio Tinto, and many other big players are rushing through the gates. . .

Here's the Deal

For the better part of a century, Mongolia has been known for its wealth of minerals: gold, coal, rare earth metals. Heck, the Russians had the whole place mapped out in the 1960s.

But under Russia, very little extraction ever took place. In the early 1990s, Mongolia finally broke free from its status as a Soviet puppet state and the country reacted like many former Russian states: It whipsawed from corrupt renegade capitalism back to its former communist party rulers and a collective mentality.

But neither of these systems was conducive to the massive capital inflows necessary to fund long-term gold, copper, and coal mines.

And as a result, during the commodity boom era of the 2000s, Mongolia was taken over by the anti-capitalists and strict laws were made placing punitive taxes on foreign companies after Mongolia's mineral wealth.

The Plunge Protection Team's Historic "Tip-Off"

Some people think the PPT is an Oliver Stone-style conspiracy theory.

Yet this secretive group is as real as the day is long.

And they recently leaked investors to another bombshell of an opportunity... the fuse, of which, has just been lit.

Click here to learn more about the Plunge Protection Team -- and the once-in-a-lifetime money-making opportunity behind it.

Then last year, the Moderate Social Democratic Party took power. This new group had a pragmatic approach to economics and political ideology. One of the first things those in power did was to cut the corporate tax from 68% to 30%. I bought one small gold miner in anticipation of this new law. . .

It is now up more than 458%.

See for yourself:

As you can see, the law passed in mid-August.

The first group to take advantage of the new law was Rio Tinto and its partners, who had been sitting on a concession for about 10 years. They reached an agreement with the government and are investing some $6 billion to build the world's largest gold mine within 100 miles of the Chinese border.

To give you some perspective, the square footage of this mining property is bigger than the state of Ohio. And the $6 billion investment — coupled with the expansion of the economy — will easily double Mongolia's $9 billion GDP.

An independent study projects the mine will be "capable of average annual production in excess of one billion pounds of copper and 330,000 ounces of gold for at least 35 years. Peak annual production in excess of 1.6 billion pounds of copper and 900,000 ounces of gold is projected to be reached six years after initial production."

This Is a Very Big Deal

As soon as the law passed, I started touching base with my contacts. I called James Passin, who runs the extremely successful Firebird Global Fund. James and I worked together for many years at the Taipan Publishing Group.

(You may have recently seen James' name in newspapers for hosting a fundraiser for former President Bill Clinton and the current Governor of Maryland, Martin O'Malley, at his New York brownstone.)

Name-dropping aside, knowing people on the ground is key.

In fact, over the past few years, Firebird has been buying up small companies in Mongolia in anticipation of the new gold rush.

The first thing James told me was that he owned a large portion of the largest broker in Ulaanbaatar who would be happy to show me around. He was also going to put me in touch with a national hero and wrestling champion who is very well-connected.

Mr. Passin's theory is that everyone knew about Rio Tinto (Market Cap: $89 billion). And yes, it might go up 50%. . . but the real money was going to be made in the banks, telecoms, and breweries — among others. The massive flood of liquidity taking over Mongolia (with a population of three million), would send fifteen-cent companies to five dollars almost overnight.

My friend's theory is hard to argue. My own research had given me the distinct feeling that Mongolia could be the Kuwait of Central Asia, with its oil, coal, gold, copper, uranium, rare earths. . .

The Rush Is On!

I'm not the only one who believes this. Just this week, China put up $700 million in a coal company.

According to Reuters:

Hong Kong sovereign wealth fund China Investment Corporation is planning a $700m investment in Iron Mining International, a mining company with interests in Mongolia. Iron Mining is backed by private equity firm Hopu and Singapore state investment group Temasek.

The deal tops off a billion dollar spending spree by the group this week into the Mongolian mining sector. CIC also took a $500m stake in Canadian company SouthGobi Energy Resources in the form of a 30-year secured debenture issued by the company. SouthGobi also has coal mining interests and exploration assets in Mongolia.

And an Australian Company just sunk another $195 million into coal. According to its press release:

Leighton Holdings Ltd. (LEI.AU) said Wednesday that it has secured an upgrade worth A$195 million of a mining contract in Mongolia.

Australia's biggest construction company said Energy Resources LLC has asked its subsidiary Leighton Asia to expand the production capacity of the UHG Coal Mine in the South Gobi region of Mongolia. The adjustment increases the contract's value to A$480 million, Leighton said.

My Flight Leaves Monday Morning at 6:48. . .

It's this type of market momentum that has me getting on a plane early Monday morning and flying 26 hours to Mongolia.

I will report my first impressions next week. The opportunities seem enormous, but you just can't run around half-cocked. . . There are reports to be read and people to talk to.

Look for the full report to be in your inbox on January 1, 2010. Truth be told, I'm not even worried about UB's temperature reached a chilly 13ºF at the high today — I haven't been this excited about an investment situation since the Russians were selling Gazprom for coupons.

And while the commodity boom in Mongolia is just taking off, we're already situated in the early stages of the greatest commodities bull market in history... one that my colleague Ian Cooper has been capitalizing on week after week. He's closed 93 winning trades with his resource and energy stock picks this year alone. To learn how his readers are enjoying gains of 3,124% since November. . . and how there's still time for you to get in before his next trade, just follow this link.

Meantime, stay tuned for news from on the ground,

Christian DeHaemer

Editor, Energy and Capital
(and soon-to-be-launched Crisis and Opportunity)

Stake Your Claim in the Stimulus Goldmine

With $787 billion in pork now sloshing around Washington D.C., one industry in particular stands to grab the lion's share.

And for the investors that get there first, this moneymaking opportunity is one that may just turn out to be the mother lode.

To learn more about the Stimulus Goldmine that could easily double when all of that pork gets spent click here.

Buy Put Options on the Russell

The usual way to make money in the market is to buy when others are selling, and to sell when others are buying.

Or, as the oft-quoted Barron Von Rothchild said, "Buy when blood is running in the streets, and sell when the horns are blowing victory."

I've been long and strong since last December, when I was buying up junior gold plays on the cheap. In the spring, I was buying oil and riding the 3G telecom wave in emerging markets. It turned out I was correct — and had my best overall year since 2003.

Forget Gold.

Silver's got the spotlight now.

And in our new report, we reveal the one silver stock that returned
investors annual gains of 852%... over 9 straight years!

Simply click here to get it.

The truth is I've had a very good crisis.

But I'm not here to gloat. I'm here to tell you how to profit from what's going to happen next. . .

Where has the fear gone?

If you remember, during the spring of 2009, you couldn't get a higher rate of bearish market psychology. The fear was so palatable you could smell it. People were literally jumping out of windows with their trading account records stuffed in their coat pockets.

Obviously, that was the time to buy.

But now, there is no fear. Every stock chart you look at is up 200% or more. Investors who've held through the bad times are thinking, "A few more up months and I'll be able to retire again."

But they aren't going to get it — not this year, anyway.

I'm not just blowing Dixie. This isn't just a hypothesis. I know the bears are dead because the volatility index (VIX), a great measure of market psychology, is back to historic lows.

VIX is Down

Think of the VIX as the opposite of the stock market. A year ago, it took off to record highs as the major indexes fell 50%. When the market started to calm down and the bulls took over, the VIX went back to its historical trend line at 20.

Two Year VIX

This tells me that all of the bears are wrung out of the market. And let's face it: they've been getting creamed for eight months.

The good news is put options are cheap again.

But it's not just the lack of fear that had me bearish. . . it's the Dow Jones Transportation Average, a leading indicator.

Be Bearish

The Dow Jones Transportation Average has a double top, which is a major reversal chart pattern. It means that the bulls have tried to break a certain level. . . fallen back. . . tried again. . . and failed again.

Double Top in Transports

Dow Theory states that if the Transports break their trend line — and this is confirmed by the Dow Industrial Average — then we are in a bear market. This theory has been right 10 out of 11 times. The Industrials haven't confirmed. . . yet.

But the small caps also have a double top.

Russell 2000 — Double Top and Broken Trend

There is also a double top in the Russell 2000 — the index of the small capitalization stocks.

If you go back through market history, the small caps tend to lead the market both up and down. The idea is that they are more nimble and less defensive. Therefore, they are the first to be affected by events.

The Little Guys are Running Scared

You will also notice that the MACD had a crossover and turned negative. And the volatility has flattened out to the point that it has broken its downtrend.

I'm starting to see these bearish chart patterns all over the place. The NASDAQ has broken its uptrend as well, and looks like it is rolling over. . .

The dollar is bouncing higher — a sure sign the smart money is getting out of equities.

I recommend picking up some iShares Russell 2000 Index (IWM) put options.

I suggest the December 53 (symbol: IWMXA), which last traded at $1.40 with 23,650 contracts out. Or you may just consider switching some of your investments into cash.

Happy Investing,

Christian DeHaemer
Angel Publishing

Editor's Note: Wealth Daily has been pointing out market trends and opportunity for profit to our readers for years now. . . and our team of researchers realizes just how precious time is when it comes to gathering information, spotting trends, buying, holding, and selling. . .

My colleague, WD's own Ian Cooper, takes the legwork out of this time-consuming process for his readers. His Options Trading Pit delivers market commentary, urgent updates, and market picks that are up 1794% since January of this year. Click here to become one of these profit-taking readers.

Natural Gas Storage Stocks

The greatest — and most ironic — thing about Chicago Bridge & Iron is that they aren't in Chicago. . . don't build bridges. . . and have very little to do with iron.

What the company does do, however, is all the rage. The Netherlands-based engineering company makes infrastructure for natural gas storage and transportation. This sector is so hot that they've picked up six contracts since September — including one just yesterday.

94% Success Rate Since February 2009

Click here for more.

Gas is Expanding

Around the world, the total known reserves for natural gas are expanding rapidly. In the United States, known reserves have increased 48% over the past three years, due to new drilling techniques called fracting. A natural gas consortium is running television ads saying that we have a 100 year supply of this clean plentiful energy.

China has entire city fleets of buses and taxis that run on compressed natural gas. China also has massive amounts of coal-based methane — methane that sits on top of coal fields. Again, new technology is allowing China to utilize their resources.

Russia's Gasprom (OGZD.IL) has more BTU's in natural gas than Saudi Arabia has in oil, and is now exporting natural gas to California from Siberia.

T. Boone Pickens and his Clean Energy Fules Corp. (CLNE) are running port facilities where every vehicle is based on natural gas. He has had meetings with President Obama and Al Gore on the subject.

Honda has a natural gas car available for sale today that you can plug into a gas pipe in your garage.

Peterbuilt is selling natural gas long haul trucks because it makes fiscal sense to run on NG, as it's cheaper and cleaner. . .

The U.S. has too much natural gas. . . so much, in fact, that the price has dropped to ten-year lows — from $14 to $2.80, while oil went from $35 to $80 a barrel. (I should note, there's been a recent suckers' rally that pushed it back above $4).

"That's great," you say. . . "Cheap, clean energy for everyone. . . but how does this make me money?"

You can't buy the explorers; you can't buy the producers or the service guys; rig counts have fallen through the floor. . .

But what you can buy is the one company that builds storage and transfer stations.

Chicago Bridge and Iron (CBI:NYSE) is an engineering company that produces the infrastructure for natural gas storage and transportation. I mentioned earlier that the company has picked up six new contracts since September — these include a $70 million deal they picked up last week to build a facility in Siberia, and another $100 million deal on Friday.

According to Yahoo:

Chicago Bridge & Iron Co. NV, an energy-infrastructure construction company, on Friday said it received a contract worth more than $100 million from UGI LNG Inc. to engineer and construct the expansion of a Temple LNG peak shaving facility near Reading, PA.

Under the contract, CB&I will be responsible for the addition of a new 50,000 cubic meter liquefied natural gas storage tank and related processing facilities designed to provide 150 million cubic feet of natural gas per day during peak demand periods.

As you can see in the chart below, they have sliced through all resistance and appear to have none until they hit $30. They have a decent balance sheet, a P/E of 11, and should continue to grow with the expansion of the natural gas industry:

The company has a conference call today, and I think the sentiment will be bullish.

Sincerely,

Christian DeHaemer
Editor, Energy & Capital

China's Green Investment

China has a big problem.

Anyone who has been to Beijing, or watched the 2008 Olympic Games, knows that China suffers under a large, black cloud of soot and smog.

On August 27, 2008, China officially became the world's largest polluter. On that day, they churned more CO2 out of their coal-fired electric plants than the United States.

Thanks to a little-known California law, this wind energy stock is about to become

One of the most sought after wind plays on the planet.

Get in before the law goes into effect, and ride it for a quick 112% gain.

Click here for more. . .

The Middle Kingdom suffers from a dearth of oil, but has abundant coal supply. For this reason, they use coal for just about everything. . . and given the 10% annual growth in GDP, its use is expanding rapidly.

A recent report from Canada says that China's greenhouse gas emissions have increased 120% this decade.

The Climate Bugbear

Now, I'm not writing to you about saving the environment. I believe that "climate change" is to the Democrats what "terrorism" is to the Republicans. To paraphrase H.L. Menkin, it's a bugbear used to frighten the public. It gives the politicians something to save us from.

So, it's no wonder that China has been fighting international environmental agreements for years. The country would not only rant about western imperialism, but argue correctly that while it contains twenty percent of the world's population, its greenhouse gas emissions per capita have remained less than other industrial countries'.

It seems only natural that the world's fastest growing, highest pollution-producing country would continue on its path of anti-environmentalism. . .

This is why I was so shocked to read that China recently:

Held meetings in New York with 200 green scientists,
Is pushing green energy going into a meeting with President Obama next month, and
Has just signed an emission reduction agreement with India.

. . . And all this ahead of the international meeting on the environment at Copenhagen in a month and a half.

According to the Wall Street Journal, "Asia's two biggest polluters from burning carbon-based fuels announced their collaboration on renewable power and energy-efficiency projects in a memo of understanding yesterday in New Delhi."

What the heck is going on?

One would like to think that China has had a bout of conscience, perhaps in response to a recent report that claimed birth defects in China's coal regions rose 40% between 2001 and 2006.

According to China Daily, "The number of newborns with birth defects is constantly increasing in both urban and rural areas. Environmentalists say that the leading culprit is China's dependence on coal and that birth defects are highest in coal-producing regions such as Shanxi province and Inner Mongolia."

Follow the Money. . .

I'd like to think that China is motivated by ethics, but I doubt it. Rule number one of investing is to follow the money. When a country like China suddenly switches its rhetoric to encompass environmentalism, there is a reason. . .

Green energy is where the money is. The richest man in China (worth $5.1 billion), plans to take over the world by selling electric cars to the masses, and the second richest person made her $4.9 billion fortune recycling paper.

In fact, China's green industry is now estimated to be worth $132 billion.

Wan Benti, chief engineer with the Ministry of Environmental Protection in China, claims "the total output value of 1,300 Chinese enterprises in the environmental protection industry will hit 900 billion yuan by the end of this year."

China is already the world's largest producer of solar panels, and is becoming a front runner in the battery and power storage sector. Note the surge in Hong Kong High Power Technologies:

I suspect that China's newfound environmental crusade has less to do with CO2 emissions and more to do with profit.

If the rest of the world wants to hamstring its leading industries by throwing up more barriers — in terms of carbon restrictions, cap-and-trade, etc. — China is more than happy to sell electric cars and solar panels to consumers in the West.

And if GE sells fewer turbines and GM fewer cars, that's alright, too. . . just don't expect China to follow any agreement it signs.

In the end, it's just more of the same Chinese duplicity.

I do know one thing: all of these Chinese green energy companies can be expected to surge going into the Copenhagen meetings. I'll send you my best idea next week — it's a cutting-edge battery maker that could easily go up 1000%.

Sincerely,

Christian DeHaemer

Energy and Capital

P.S. At this stage in the recession, I would dare any trader to match the success that my colleague, Ian Cooper, has been having lately. After all, how many people do you know trading with a 94.2% success rate? While most traders are running away as fast as they can, Ian simply rolls up his sleeves and gets to work. Recently, he's knocked out a 20% gain in two days — and another 58% trade in a little over a week. But hey, don't take my word for it. . . I want you to grab these profits for yourself. Just click here to learn more.

Chimera Stock

Over the last five years, we've seen record investments in housing, bundled mortgage securities, and an alphabet soup of highly-leveraged debt products (CDOs, LDOs, etc.). In late 2007, the greatest fool bought at the very top. . . and then Wall Street started selling and the house of cards fell.

There was one company that was created to profit from these debt products. But as luck would have it, this company went public at the peak of the carnival.

The good news: they banked a lot of money with their IPO. The bad news: their business model was untenable.

Have You Heard of the Conference of Parties?

Only a few have. But those in the know are already turning tidy profits.

The Conference of Parties -- better known as COP-15 -- is a clandestine meeting attended by leaders from 192 countries.

Their goal: to map the world's economic trajectory for the next 50 years.

The name of the company is Chimera (CIM: NYSE), a Mortgage Real Estate Investment Trust (MREIT). Its purpose in life is to borrow short-term at under 1% and invest long-term in real estate debt products at more than 4%.

As you can see by the current yield curve, this is highly possible:

Source: Bloomberg (http://www.bloomberg.com/markets/rates/index.html)

The idea behind this strategy is you can leverage up your current assets by borrowing, and then later investing that money into safe and secure mortgages.

The bad news that characterized 2008 was that the credit market was frozen and CIM couldn't borrow. At the same time, real estate debt products were losing value faster than a brand new Dodge.

Chimera was stuck — and thus, punished by Wall Street. Take a look:

Not only were mortgage debt products turning into toxic assets and credit hard to come by, but the company also decided to dilute shareholders by issuing more shares and raising more money.

In the second quarter of 2009, CIM completed a third and fourth round of public and private offerings. It raised $1.4 billion dollars. There is nothing shareholders hate more than seeing their equity destroyed.

But their misfortune is your gain. . .

CIM used this money and invested in debt products at the bottom of the market. The risk is limited because most of these debts are now backed by the U.S. government, as Freddie and Fannie are de facto wards of the state.

Dividend Yield

Mortgage REITS are obligated by law to pay out 90% of their gains in the form of dividends, and CIM just raised their dividend. According to Business Wire:

The Board of Directors of Chimera Investment Corporation (NYSE:CIM) declared the third quarter 2009 common stock cash dividend of $0.12 per common share. This dividend is payable October 30, 2009 to common shareholders of record on October 1, 2009. The ex-dividend date is September 29, 2009.

That puts their dividend at 12% — a nice return by anyone's standards.

And now, you also have a real shot of seeing the share price return to previous highs, as the dividend continues to go up over the next three quarters.

I say three quarters because the Fed must keep short-term rates low to save the housing market. And it is unlikely they will raise rates until the summer of 2010 (at the earliest), when inflation becomes obvious.

Insiders in CIM seem to think the same way — they recently bought 150 thousand shares. Institutions have bought 378 million shares. You can see the volume picking up on the chart and the December $5 call options (CIMLA) have 28,959 open contracts. . . seems to me like a high number for a $4 stock.

I'm thinking someone knows something.

Earnings are due during the second half of November. They should reflect the leveraged (6 to 10 times) investment of that $1.4 billion dollars acquired during the second quarter and invested in discounted mortgage debt.

One way to profit from this stock is to buy those December $5 calls at $0.15 and sell them into earnings. The second way to profit is to buy and hold for the next three quarters and make money on the dividend, as well as the share price appreciation.

Plan on selling if the chart breaks the trend line to the downside — or if the yield curve flattens out.

Good hunting,

Christian DeHaemer

Wealth Daily

P.S. If you're looking for more high-yielding dividends in the MREITs space, Annaly Capital Management inc. (NLY: NYSE) has a dividend yield of 16.6%. Anworth Mortgage Asset Corp. (NYSE: ANH) pays out 15.9%. Capstead Mortgage Corp. (NYSE: CMO) 15.9% has a yield. And MFA Financial Inc. (NYSE: MFA) will give 12.9% for a dividend. I'll continue to keep you informed in Wealth Daily in the weeks to come.

P.P.S. Earning giant-sized gains is as easy as subscribing to The Wealth Advisory. Bull market or bear market, my colleague Steve Christ has a nose for money. In fact, Steve has closed out 34 winners for just 13 losers. . . earning 600% net gains over the last 18 months.

Here a just a few of them:

Orexigen Therapuetic (OREX)—closed for an 81% gain
General Cable Corp(BGC)— closed for a 32.8% gain
W.R. Grace(GRA)-closed for a 99% gain
USEC Inc.(USEC)—closed for a 59% gain
Shaw Group (SGR)—closed for an 81% gain

To learn more about how to join Steve's team, click here.

Investing in Combustible Ice

President's Note: It's my pleasure to introduce to you the latest addition to the Wealth Daily team, Christian DeHaemer. If you're a veteran reader of investment newsletters, you've undoubtedly come across his analysis... and possibly some of his many profitable market calls. Chris was responsible for handing his followers +672% on Oracle... +735% on Sun... a +450% gain in Heritage Oil... and an average gain of +252% on four gold mining stocks, just to name a few. Chris has been a financial analyst for nearly 14 years and I have no doubt he will continue his profitable calls for Wealth Daily readers.

Brian

— — —

Some say the world will end in fire;
Some say in ice.

The existence of methane clathrate, or "combustible ice," might give Robert Frost's poem scientific credibility. . .

Burn, Baby, Burn

Though methane clathrate may seem like something out of an episode of the X-files, the truth is flaming ice is real, abundant, and believed to have played a part in the massive climate shifts throughout earth's long history. What's more, there's enough of it to power the world for 1,000 years. . .

Gold Profits from Government Corruption

Bailouts, stimulus plans, rescue packages... whatever they call them, the result is inflation, and the rapid draining of value of the dollars in your wallet.

Meanwhile, gold - which can't be printed like Monopoly money - will only continue to appreciate as the Feds continue to dole out corporate welfare.

Fortunately for us, there's a new investment phenomenon that our resident precious metal expert calls "gold's doubling effect," which gives investors 2x gold's daily gains. In other words, you make $2 every time gold goes up $1.

To learn how to take part in this incredible opportunity, just click here.

Combustible ice is a simple combination of methane and ice crystals. It is usually formed under sediments in the deepest parts of the ocean, where methane escaping from the earth's core runs into high pressure and low temperature and becomes trapped in the crystal structure of water ice.

Double the Known Reserves

What might be surprising than its earthly existence is the sheer abundance of methane calthrate. Some geologists estimate that there is twice as much of this compound than all known oil, natural gas and coal reserves on earth...

According to Forbes:

Timothy Collett, a research geologist at the U.S. Geological Survey, has estimated that there could be as much as 317 quadrillion cubic feet of methane gas stored in hydrates in the U.S.

To put this in perspective, the U.S. Department of Energy estimates that the country has 187 trillion cubic ft of natural gas reserves. Needless to say, the potential value of gas hydrates as a less-polluting and more secure supply of energy is immense.

The Methane Time Bomb

There is a downside to all of this stored energy. The problem arises when temperature shifts or pressure changes and massive amounts of methane are released. The sudden release of these giant gas bubbles have been known to sink ships.

But more alarming than that, methane is 20 times worse than CO2 as a global warming agent. The sudden release of natural gas in extraction processes from methane clathrate deposits has been pointed to by climate scientists as a major cause of past and possible future climate changes.

According to the Independent:

Methane is about 20 times more powerful as a greenhouse gas than carbon dioxide and many scientists fear that its release could accelerate global warming in a giant positive feedback where more atmospheric methane causes higher temperatures, leading to further permafrost melting and the release of yet more methane.

The amount of methane stored beneath the Arctic is calculated to be greater than the total amount of carbon locked up in global coal reserves so there is intense interest in the stability of these deposits as the region warms at a faster rate than other places on earth.

China Rolls the Dice

So, I was a bit concerned when I read that not only has China recently discovered land-based methane clathrate... but that they have plans to exploit it.

According to the People's Daily:

China will likely make a breakthrough in developing gas hydrates, which have been recently discovered on the Qinghai-Tibet Plateau. Zhang Hongtao, chief engineer of China's Ministry of Land and Resources, said that the discovery of gas hydrates is comparable to the discovery of the Daqing Oilfield 50 years ago.

With a combined permafrost area of 2.15 million sq km, China enjoys advantages in gas hydrates deposits.

Scientists estimate that the hydrates can provide the equivalent of 35 billion tons of crude oil in energy, enough for consumption for 90 years in China, whereas the deposits in Qinghai Province alone make up one quarter.

Extraction

There are two ways to get the methane out - heat the ice with hot water or remove the pressure. When you do either of these things, the lion's share of gas escapes into the atmosphere. That's not to say someone won't figure out a way to do it. In fact, the Japanese are working on a project that is set to go online in 2016..,

But so far there is only one field that has commercially produced gas from methane clathrates, the Messoyakha Gas Field, which supplies Norilsk, Russia, with energy.

So where does that bring us and our budding relationship with burning ice?

Natural Gas is the Only Choice

I've been investing in oil and energy stocks for the better part of two decades. There is no doubt we are near or past peak oil. Nor is there any doubt that the only fiscally feasible solution for powering the globe is hydrocarbon based.

The new extracting methods for natural gas have added 58% to the known reserves in the United States. Combustible ice would give the world 1,000 years of clean burning energy. It could potentially fill the gap oil will leave in a few decades' time. Oil won't last.

There are plenty of ways to profits from these macro-changes in energy.

In the past two quarters alone I've made gains of...

DGO - up 94%

ANV - up 120%

RIC - up 72%

EGI - up 206%

NSU - up 132%

HOIL.L - up 136%

TLW.L - up 62%

And that's just the short list. Over the next few months, I look forward to bringing you actionable information on how you can profit from humanity's constant quest for power.

Sincerely,

Christian DeHaemer

Writer, Stock Picker and Chief Dishwasher

Wealth Daily

Investor's Note: For those of you who don't want to sit on the sidelines any longer, check out my colleague Ian Cooper. Ian's track record is impeccable. Who else do you know who trades with a 94.2% success rate? In today's market, Ian still manages winner after knock-out winner for his readers. . . and I'm not talking about holding on to a stock for years.

Lately, his Pure Asset Trader members have reeled in 35% in 5 days, 47% in 9 days — even 20% in just 48 hours! But I'd rather let you see these gains for yourself. Simply click here for more information.