Urbane Gorilla!

With China's Oil Demand Up, Watch A-Power Energy

This from a recent Interfax article. Apparently the Chinese are aware of the problem... whether or not they actually do it is another issue. jegan ;-)

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Energy

Fri 05 Dec 2008 20:55
China proposes bumping up consumption tax on gasoline, diesel

Shanghai. December 5. INTERFAX-CHINA - China's central government has released a draft policy to raise the consumption tax on gasoline and diesel as of Jan. 1, 2009, as part of the country's plan to reform its fuel pricing system, state media reported on Dec. 5.

Under the proposal, the government would raise the consumption tax on gasoline from RMB 0.20 ($0.029) to RMB 1 ($0.15) per liter, and the tax on diesel from RMB 0.10 ($0.015) to RMB 0.80 ($0.12) per liter, Xinhua news agency reported.

The government would also stop collecting six kinds of transportation fees, including the fee for highway maintenance.

In addition, the government would cap the retail prices of gasoline and diesel, instead of allowing fuel prices to float within a range, the report said. Under the current system, gas stations are allowed to set retail prices within 8 percent of a benchmark decided by the government.

Three Chinese ministries and the National Development and Reform Commission (NDRC) will collect comments on the draft proposal from the public from Dec. 5 to Dec. 12.

Chinese Stock Market Bottoms: What Should U.S. Investors Do?

Having had the flesh seared from my bones buying FXI, I do still watch it and it has popped up on my alerts lately. The FXI finally has a Daily 10MA crossover the 20MA. That's good. However, price still needs to test the MA20 again and the MA10 and MA20 need to begin ramping up before buying. I'd watch the RSI or ADX for verification. I'd also trail a tight stop under the MA20 in this market. Lastly, this could just be consolidation between 23 and 27.... We all know what consolidation is, right? It's a little rest before continuing in the same direction as the previous trend. Err.... That would be down....

jegan ;-)