Solar power has been on fire, with our recent recommendations; LDK Solar (ADR: LDK) and Suntech Power (ADR: STP) leading the way!

What to do now:
After such a strong run-up some profit taking is likely. You might consider taking a portion of your position off the table here and booking profits, but I advise holding on to at least half of your shares. There's a good chance we'll see more.

What's going on:
LDK in particular has been lighting up the newswires, with the company scoring a triple-source supply coup and some key clients to boot.

As I've mentioned, one of the key challenges to solar panel producers is the shortage of polysilicon wafers and the risk of a production hold-up. This is the kind of stuff that keeps many a solar company CEO up late at night and afraid of the dark. Well, LDK just about eliminated that very important concern from their business model with this trio of huge supply contracts, totaling over 1500 mega-tons of supply, which will carry its needs through at least 2013.

Like I suggested before, LDK has the type of competitive advantage that tends to inspire confidence and act as a virtual business magnate. That's just what's happening.

Meanwhile, Suntech Power also made headlines, landing a nice supply contract with an Italian firm that designs and installs giant photovoltaic systems on industrial and commercial roofs to feed into the power grid there. This is something that's popping up more and more, on a global basis.

Positive feedback from a German solar conference and a new solar-theme ETF (which tends to cause buying pressure in the components companies, including LDK and Suntech) are also helping keep a floor under the shares.

For those of you who bought LDK Solar when I wrote bullishly about this Chinese solar player March 18 here in the Emerging Markets Insider blog, you should be sitting pretty - the shares have gone from about 24 then to more than 36 now. That's a very nice 51% gain - not bad for two weeks holding period!

Similar with Suntech Power (also in China), which I suggested was a timely buy in the same March 18 post. Suntech shares soared from near $31 a share then to almost $50 now, a very respectable 61% gain (I had mentioned Suntech earlier this year, but only as a cautionary "hold").

But you could have make 10 x that much!

These gains are great, especially in such a short time frame - but I'll show you how you could have made 10 times that amount - with less risk. Watch for details and a very special offer soon...

Best wishes,
Jeff Manera
Emerging Markets Insider
Email: Jmanera@EmergingMarketsInsider.net

The Story:

A new ETN (similar to an ETF but structured differently, with credit and futures components) that just launched really caught my eye. The Market-Vectors Renminbi/U.S. Dollar ETN, Symbol CNY. It's joint venture between Van Eck and Morgan Stanley, this new instrument does not invest directly in the Yuan-Renminbi, but instead tracks an index based on futures on that currency. Simply put, the shares in this ETN (currently pricing near $40) go up when the Chinese currency appreciates against the U.S. dollar. This follows the launch of several other ETNs on other, more common currencies which can also be easily traded directly. The primary difference with this ETN: The Yuan-Renminbi has been unavailable to trade for the individual investor up to now.

What to do now:

Buy some CNY! Since I consider the Chinese currency to be one of the best and safest places to park money right now, I advise you to do the same, placing a portion of the money you currently have parked in low-risk instruments such as money markets or treasuries. There is still some minor execution and credit risk buried in the instrument, but I consider it minimal and you're likely to get more than 10% in the next year or so - possibly a good chunk more. It's traded throughout the day so ease of entry and exit is high.

Why this Yuan-thingee vs. other currency ETNs for my safe money?

The Yuan-R is almost assured to continue appreciating steadily against the U.S. dollar. And this relationship is likely to continue regardless of economic developments here, there or elsewhere.

Some history: From 1994 until 2005, this currency was loosely, but clearly, pegged to the U.S. dollar. Now's it's still obviously pegged to the dollar (in a slowly inflating relationship), but also supposedly influenced somewhat by a basket of other currencies.

Below is a chart showing the progression from being completely fixed to the dollar at about 8.3 Yuan-R to the dollar, to slowly and steadily appreciating against it following China changing its policy in 2005 in response to intense pressure from the U.S. Now, as you can see, a dollar is only worth about 7 Yuan-R, so it has depreciated - a dollar buys fewer Chinese Yuan-R now. The action of the CNY ETN, had it been in existance through this period, would be the inverse of this chart, as the Yuan-R was appreciating agains the dollar.

This currency is currently up to (nobody knows for sure) 30% -40% undervalued against our buck based on the long term manipulation by the Chinese government to keep their currency exchange rate and exports cheap. That's why half of what you own is made in China and so many U.S. jobs have been discarded due to the unfair competitive advantage such a discounted currency gives the Chinese exporters vs. the U.S. manufacturers.

Well, the party for Chinese exporters is slowly fading out and many factories there are going idle. China has been getting enormous pressure from the U.S. and other nations to allow their currency to float more freely and honestly against the buck and other world currencies. Plus they're probably going to accelerate the process by bumping interest rates to slow their red- hot economy (which will put more upward pressure on their currency as it increases its appeal to outsiders - check how the slope on the chart to 7.0 and below is accelerating). It's already happening.

This isn't typical of the high-powered, high profit potential trades I'll be giving you (you'll be getting more of those soon), but I did want to give you a head's up on this liquid, low-risk, high-yield place to park your idle money and let you share in my current observations.

Best wishes,
Jeff Manera
Emerging Markets Insider
Email: Jmanera@EmergingMarketsInsider.net

It is estimated that about 1 million new victims will be succumbing to Alzheimer's disease annually by 2010, with that number climbing as the huge baby boomer population starts to enter their shuffleboard years en masse and collectively begin to wonder where the heck they parked their cars or left their keys.

Alzheimer's disease is not only ravaging our elderly population, with more than 5 million victims in the U.S. already diagnosed and suffering, it is threatening to become one of the fastest-growing pandemics we've ever seen, with the potential to bring the world - and global economy - to its knees.

Right now, this brain-eating disease is costing U.S. taxpayers over $120 billion a year. It's already the most costly illness behind heart disease and cancer. The global numbers are of course much larger than that, but the specific data is spotty so let's just stick with U.S. data even though it understates the problem.

And that doesn't include the heavy emotional and financial drain this disease will increasingly impose on the families and caregivers of the victims. Caring for somebody with advanced Alzheimer's can cost upwards of $100,000 per year and a good chunk of that will not be covered by insurance. You think $3.50 at the gas pump is putting a crimp on consumer spending now? These costs, in dollars and in quality of life, are expected to climb dramatically unless something drastic is done to stop this scourge.

The two companies I believe have the best chance of stopping this disease, and make $billions in the process, are locked in a joint venture to develop one of the most exciting new drugs of our generation - one that can finally defeat Alzheimer's. As in cure. I'm talking about Elan (ELN), a cutting edge biotech company based in Dublin, Ireland and Wyeth (WYE), its U.S. (New Jersey) partner and the pharmaceutical and biotech powerhouse. Wyeth has a total of 10 drugs in the works for Alzheimer's, more than any other company.

The drug: Bapineuzumab (where in the heck did they come up with that name!), has recently entered phase III trials. An earlier version of this drug caused brain inflammation and trials were halted - but later analysis of the treated patients showed remarkable results in reversing Alzheimer's plaque. "Bapi" isn't causing brain inflammation. This drug, a genetically engineered antibody, actually clears away the toxic protein that clots Alzheimer's patients' brains and promises to stop and even reverse some of the damage. So early stage victims could potentially fully recover, while those in later stages could enjoy a partial recovery and totally arrest any further cognitive decline and damage.

Although both companies will benefit in a big way if this new drug succeeds, I advise Wyeth shares as the best way to directly invest in this bet.

My advice: Buy Wyeth shares up to $44.

Best wishes,
Jeff Manera
Emerging Markets Insider
Email: Jmanera@EmergingMarketsInsider.net

What's up with oil!

Much of investors' concerns in the U.S. and around the world has to do with skyrocketing oil prices and what they pay at the pump. Crude oil per barrel continues to tap new highs and is flirting with the $120 mark. Yea yea, I can just hear you now: Shut up already about oil, it's all we hear about on the news lately - that and politics and Britney's latest meltdown - enough already!

Look: I know you've been hearing about oil until you're sick of it, and I know you'd rather not be reminded what you're paying at the pumps these days, but it is an important factor in the global marketplace and bears a little discussion...

Is oil going straight to $200? No! I expect the volatile rocket ride in oil pricing and gasoline to continue, as supply tightens and the U.S. dollar continues to struggle against other currencies. But I don't expect we'll see a dramatic increase from current levels - the odds are more likely we'll see a retracement of some kind (and I'm looking into a number of potential trades for you to leverage this bet, so stay tuned).

You see, because foreigners such as OPEC (Organization of the Petroleum Exporting Countries) -- the 12 big oil producing countries -- must sell their oil in U.S. dollars and not their own currencies (which have all appreciated substantially against the dollar over the past several years, in part because of their oil-based economies), they are automatically receiving a discounted price for the oil on the open market. Therefore, these countries have to keep increasing oil prices just to compensate for the weak U.S. dollar.

So the net effect of oil being denominated in dollars is a loose but clear inverse correlation between the two. There are times they do not move inversely with each other, but that's when other factors are exerting a stronger influence - the dollar factor is always an important factor in oil pricing. This is an important distinction.

On the other hand, when oil prices increase for dollar or non-dollar reasons, it crimps the U.S. consumer and consumption -- which in turn tends to put downward pressure on the dollar due to the threat of a weakening U.S. economy. It's the proverbial vicious circle!

And much of the recent pop in oil prices also has to do with short-term causes, such as Nigerian oil supply being crimped -- again -- by terrorist attacks on their pipeline, a pipeline shutdown in the North Sea, and a 2-day strike (now resolved) by oil refinery workers in Scotland. Wait a minute... SCOTLAND?? When the heck did they get in the oil picture!? What the heck. Just goes to show you how the plot can thicken in an unexpected way at any moment.

Anyway, the point is that the future of oil prices and the effect that it will continue to exert on the U.S. and world economies is a slippery matter to get a hold of.

Let me put it this way. I sure wouldn't want to be driving an 18-wheeler for a living right now. My nephew Christopher does just that, and he tells me it costs him over $1000 to fill his tanks one time - and that it's almost not worth it anymore since he and other truckers haven't been able to pass the full increase in fuel expenses onto their clients.

Christopher made headlines and got repeated hero coverage on CNN after Hurricane Katrina. He, along with his faithful boxer "Brooklyn," who travels with him everywhere, was volunteering to assist FEMA with that nightmare, initially transporting food, water and supplies to the Superdome-turned-shelter. After unloading his supplies, Christopher took in upon himself to save a good many Katrina survivor in dire need of medical attention, by running his rig repeatedly through deep water between the Superdome and the medical center. No other truck driver would brave it (there were thugs sniping at relief workers and the waters were dangerously contaminated) or risk the near-certain and very expensive water damage to their rigs. 18-wheelers aren't amphibious vehicles. Well, his truck was gravely damaged by the deep water run (and FEMA wouldn't help with the costs), but he got the patients where they needed to go and I'm sure saved more than a few lives.

Back to oil prices. Looking at the dollar's relationship with oil from another direction, a strengthening dollar could help drive oil lower: If the dollar begins to strengthen due to either a perceived strengthening of the U.S. economy, a weakening in the other major currencies, or a pause in cuts (or an actual increase) in U.S. interest rate levels. oil will be come relatively cheaper, all else equal. Higher interest rates will typically tend to assist the local currency since higher interest rates will attract foreign investment and support the local economy.

Then, there's supply and demand. Some short-term S/D is driven by the likes of pipeline disruptions and strikes I've alluded to above. Long-term S/D will be controlled by how much oil is in the ground and what other competing energy technologies becomes mainstream. But there's more behind oil pricing than S/D or the dollar's weakness...

Much of the current price of oil is based on speculation and driven by the futures market. Depending on which expert you talk to, between $30 and $60 of the current level of $118 per crude barrel is speculation, not driven by the actual oil markets. That beast lives in a cage all by itself. As we've all seen in other markets, speculation can go well beyond where logic dictates. I personally expect oil to spike a little further short-term, then correct to $90 to $100 mid-term, without some game-changing geopolitical or macro event, such as Iran acting up in the Persian Gulf.

Best wishes,
Jeff Manera
Emerging Markets Insider
Email: Jmanera@EmergingMarketsInsider.net