Saturday

Europe “Concerns” an Excuse

Post a Comment May 15, 2010 – 12:03 am |   | Permalink |  Print This Post |

Markets crashed overnight. In yesterday’s post “BIG GUNS: Shorting” we warned that there was no better time to short:

Our indicator is currently at an EXTREME as per our previous post - so there is no better time to short than now.

The strongest index is India’s NIFTY. Short NIFTY India 5130 $10/point.

India’s NIFTY crashed and fell almost 3% closing at 5085 (down >115 points). We went all in during the day when Dax futures was actually up, buying as many put options as we are willing to write off (we are still new to options, so if you have a few words of advice or know of a good site for option trading please leave a comment). In general we stay away from options - we were advised once that the only person who makes money in derivatives are option writers.

German Put Options

We will hold our shorts until our indicators unwind. Last nights decline only put a dent to our indicator. If and when our indicator starts falling, we will start to unload our shorts (just in case markets decide to do a double/triple top).

We will spend our weekend looking for Japanese companies trading below/close to cash - having read articles that quite a few Japanese companies are cashed up. The general aversion to Japanese markets thanks to widespread negative media attention (aging population, high debt etc) is good for us contrarions.

Have a good weekend. It has been a while since we updated our portfolio - sorry we have been very busy of late!