Tuesday

Deleverage India 50 NIFTY & FTSE/DAX Arbitrage

Post a Comment June 2, 2009 – 7:49 am |   | Permalink |  Print This Post |

We closed $5/point of India at 4444 (taking a profit of $420 - 84 points after spread), and opened a long FTSE $5/point at 4457 and short Dax $5/point at 5125. 

This Indian rally is a God sent - short without over leveraging and we could easily see 4000 again. Our personal portfolio has 1.5x the shorts (hence 1.5x the pain). We feel that deleveraging as above is a good move. Our emotional indicator of leverage is still telling us we are not overleveraged ie we are still hoping for India to rally further. Bring on 4750.