A bull in china -- FXI

Above is a long term 3- year chart of the FXI which reflects the hang seng HK index. In the last year Hang seng has seen sympathy selling reflecting the Dow and the other world indices.
First some bullish technicals
1. The FXI is at a long term support trendline
2. Bullish divergences in place.
3. Stochs and other momentum indicators oversold.
4. We see a huge descending triangle pattern, which has been forming for the last year or so.

The thing to note is that this is a long term play, probably in the order of months. But we believe, the returns will be spectacular as well.

On the Fundamentals side, we believe china is facing near term hiccups are the US is barfing big time. Analysts on TV are right in that US slowdown will affect china. More directly, the huge $ dollar reserves in china are growing worthless as the dollar depreciates. But what we think analysts miss is that china has a much larger reserve of its own currency the renminbi, which we believe is going to strengthen further. The ideal vehicle to exploit this unfolding economic scene, would be to probably buy good chinese stocks and collect dividends in the renminbi directly rather than buy dollar denominated ADRs or a "lame" index like FXI. If there are such vehicles out there, kindly let us know.

This post has gone long enough and pardon me for my ramblings. Any suggestions/criticisms are welcome.

Finally on a more psychological note, if you see the china Yahoo message boards, there are so many people saying the boom in china is over after the olympic circus closes. We differ, after seeing the olympics opening celebration, we can only requote Jim Rogers- "China in the 2000s is akin to the US in the 1900s ".