TekToniKshift

Why I'm Writing Calls Against My China Digital TV Position

STV is fundamentally strong. The build out of digital cable TV in China is just beginning and China represents the largest and fastest growing market for these types of conditional access modules. STV's technology is proven and well accepted.
Look for accelerating earnings growth for the next 6 - 12 months.

I'm not sure about buying calls, but I'm long on the stock. The current dip is a buying opportunity.

China May Implode, But Broader Impact Would Be Limited

Several factors may precipitate a severe China stock market correction. An inefficient and grossly miss-manged banking system. Strong inflationary trends. Rising social unrest. Severe income disparity.
Any misstep by party leaders can trigger a loss of confidence in the "system".
China stocks will "correct", the question is when. The correction will hurt US markets and all commodity producers, the question is how deeply and how long.
How to play: diversify across several emerging markets and large cap industrials. Plus take some profits on the way up.

Sell the U.S. Market Before October

I agree October is time to be cautious, But don't count on a rising RMB. Any slowdown in US economy will postpone RMB appreciation.

China has too much exposure to US market.
I would diversify international holdings into India, Russia and Latin America ETF's or mutual funds. These economies are more sheltered from the US economy.