I was not able to read Nikkei or ASEA neither Europe we were up but in the end it looks that we may be opening higher and that was my underlying read. I don't read much from Globex but in Europe I have seen lot of short covering on Tech stocks, our opinion is very clear we think that market has earnings and this is an opportunity.What it looks like that in extreme pessimism the shorts are unable to keep this S&P lower on Globex, I would like it to open lower go lowerr so that I may be out of my long puts and leave my shorts as it is and go up, but it does not look like that...
I think I have seen Nikkei much lower, also HKMA were not in a need of intervention as HK did close 1000 points above where they intervened last. On Latam my views are the same huge hedge funding unwinding activity going on, the markets are event driven on fundamentals we are set to overcome these sharp swings, INTC was one example last night, SEG in my opinion will be another and Oracle did report better, so did ADBE.. I have in last few days traded in between levels and have done pretty well, I am under no doubt that markets will after selling the rumor buying the news will remain stable-- IN UK the largest Airshow had largest record number of orders this year, 121/2 billion $-- Frnech Banks have come up with record earnings but they aree beaten down 15 billion has been recorded as provisions in BNP, CCF and SG. Hanson one other UK company came out with great earnings so right now we are under pressure for wrong reasons.
I will look for oppotunities will not be deterrred by this overwhelming bearish sentiment and will pick my stocks at the right time, until such time I have been very successfully implementing my longs puts strategy, I was seeler of puts on long weekend, I was buyer of my 901 puts on day of rally, I was again buyer of puts when 1007 was taken out on close day before yesterday, got out of them re-estab;lish my spread and waiting for market to open.
It is very few ocassions in my career that I have made greatest return possible one was when SOX hit 137 July 96, other was 28th Oct 97 and may be this time around is a opportunity to use my trading profits in what I think are great companies. My startegy is simple below 947 the second dip not the first today I will be short, on the first I will be out of my puts 950, I think I am going to mantain my bullish stance and will certainly load up on DDX and SOX..on the way up --
On weakening $ it will benefit the markets you will see it, a company which makes 10.000.000 Mark profit when reparptiates that profit back into US at 1.86 to $/Mark makes a 9% lower profits when same profit is repartiated to US at 1.69 $/mark... forget about the profit growth, the exchange translation helpsa lot, the statement of income of INTC will surprise a lot, in my opinion INTC last night has jolted a lot of shorts they will run for the cover- the markets will not be ruled by emotions it all boils down to your long core positions, for me trading is the short term goal where I like to make profits but adding to long term holdings at lower levels is the most important thing-- as far as market is concerned the external events never drive the market it is the macro-economic fundamentals the trades we do on that basis have far batter chances of a success.
I am strictly looking at my levels will act with lethal accuracy and come out, this is the game plan but CSCO TXN INTC MSFT are not something that I will not sell- |
