Friday, August 20, 2010

Any Place Left For US Investors To Hide? - Impending Bond Bubble Burst

Bond markets and bullion markets are considered as safe haven for risk averse investors. For risk tolerant investors stock markets and forex markets are supposed to be the places to be in. But when risks in stock markets increase to untenable and unbearable levels, even the risk tolerant investors seek out the safety of bond markets and bullion markets. This action of investors is often described eloquently as "flight to safety".

Now there is disaster lurking around the corner in US bond market in the shape of a bubble burst. Abysmally low interest rate regime coupled with high demand for bond papers has resulted in high price of bond with extremely low yield. Hence investors chasing some decent yield end up buying high-yield-junk bonds. This has caused a bubble like situation in US Bond Market. The last bastion of safety for US investors is on the verge of a collapse. Will there be no place for US investors to hide?

I have no ready answer to offer for US investors. They surely will have some Plan B tucked up their proverbial sleeves. After all they are the most sophisticated and evolved investors on this planet with the deepest pockets. But of late in US stock markets they have been behaving like small school children. Almost everyday some weekly economic data or the other is churned out from various US organisations. And everyday US investors act according to the sentiment of the data. That means if the data is negative they sell off in stock market and vice versa. Hence you have two days of gain and on third day all your gains are erased because that day some weekly data is negative in tone.

It is a sad commentary on the sophistication of supposedly the most evolved financial wizards and savvy investors of the world. Then tell me how are they any different from investors of Banana Republics? Going forward if that is how US stock markets are going to keep behaving, it will not be long before other markets stop looking for direction from US markets. That will be the stepping stone to the oft quoted concept of  "Decoupling"

Thursday, August 12, 2010

Stock Futures Trading Made Ezy - Patni Computers

On 30 July 2010, my subscribers at traded Patni and made Rs 3000/3500. Again today they could make profit in a fresh trade in Patni Computers. Profit booked in this new position today ranged from Rs 3500/- to Rs 6000/-. Yet another trade where my subscribers smartly made reasonable profit from a long position(ie Buy position) in conditions of depressingly negative market sentiments. This again has been possible by calculating the point of bounce with Fibonacci golden ratios. Stock Futures trading done in very simple manner!!

Patni Computer August Futures was recommended by me on 10th August to be bought at 450/452. Target given was 478. However today after 2 trading days I gave a call to book profit at 460. You will appreciate that market conditions were very negative in early trade and so I thought it wise to lock profit, though small. And there I was proven wrong. Patni raced off to make day high of 483.8, even surpassing my initial given target of 478. But I think it is better to be safe in this market than be sorry. My subscribers could make profit, in a falling market, trading stock futures and that is more important. Here is the link to details of actual trading with time stamp : .

With today's concluded trade in Patni, we are still maintaining our tradition of 100% success in our exclusive club of futures trading at Stockezy. This success rate is being maintained for the last 3 months. I wonder how many more successful trades in stock futures are required for retail investors to realize that there is money to be made in trading stock futures in small simple ways!!! Stockezy provides this wonderful opportunity to make good money for a very small subscription amount, and that needs to be tapped by one and all.

Wednesday, August 11, 2010

Performance Of Trading Stock Futures : July 2010

Till 14th July 2010, there were 14 stock futures trade which were concluded as per my recommendations at . The details of the trades were published on 15th July in a post titled "Trading Stock Futures : Performance Update Mid July 2010". Till then we had maintained 100% success rate, meaning that all these14 trades yielded profit. Total profit generated from these 14 trades was Rs 1,50,250/-Here is the link to the post giving out details of individual trades :

Now is the time to carry out performance check of stock futures trade that were carried out in the second half of July 2010. There were nine long trades executed in Stock Futures during this period. As is the established tradition in my exclusive club of stock futures trading at Stockezy, 100% success was again achieved in all these nine trades. Total profit generated from these nine trades was Rs 52,100/- at an average of  Rs 5789/- per trade. Details of these trades are given below :-

Ultracemco July Futures(Long) :
Bought at 833 and covered at 848. Lot size = 250. Investment = Rs 41,000/-.
Profit = 15x250= Rs 3750/-. Return on Investment = 9.1%

Renuka Sugar July Futures(Long) :
Bought at 69.7 and covered at 71. Lot size = 2000. Investment = Rs 28000/-.
Profit = 1.3x2000= Rs 2600/-. Return on Investment = 9.2%

Bajaj Hind July Futures(Long) :
Bought at 117 and covered at 119. Lot size = 2000. Investment = Rs 46,000/-.
Profit = 2x2000= Rs 4000/-. Return on Investment = 8.7%

ACC July Futures(Long) :
Bought at 802 and covered at 820. Lot size = 250. Investment = Rs 40,000/-.
Profit = 18x250= Rs 4500/-. Return on Investment = 11.25%

ABB August Futures(Long) :
Bought at 775 and covered at 795. Lot size = 250. Investment = Rs 38,000/-.
Profit = 20x250= Rs 5000/-. Return on Investment = 13.15%

Ultracemco July Futures(Long) :
Bought at 826 and covered at 845. Lot size = 250. Investment = Rs 41,000/-.
Profit = 19x250= Rs 4750/-. Return on Investment = 11.5%

HCL Tech August Futures(Long) :
Bought at 378 and covered at 382. Lot size = 1000. Investment = Rs 75,000/-.
Profit = 4x1000= Rs 4000/-. Return on Investment = 5.3%

HCL Tech August Futures(Long) :
Bought at 375 and covered at 395. Lot size = 1000. Investment = Rs 75,000/-.
Profit = 20x1000= Rs 20,000/-. Return on Investment = 26.7%

Patni August Futures(Long) :
Bought at 473 and covered at 480. Lot size = 500. Investment = Rs 47,000/-.
Profit = 7x500= Rs 3500/-. Return on Investment = 7.5%

In all 23 stock futures trade were carried out in the entire month of July 2010, with 100% success in all trades. Total profit accrued in July 2010 from these 23 trades was Rs 2,02,350/-(Rupees two lakhs  two thousand three hundred and fifty only), at an average profit of Rs 8798/- per trade.

Stock Futures Trading Made Ezy - Ambuja Cements

Trading stock futures has been a rewarding experience for my subscribers at , a fact that been proven over and over again with a 100% success record in more than 30 trades. Not one stock futures trade has been a failed trade. Every trade has given profit to my subscribers. Profit realized by my subscribers has been to the tune of Rs 25000/- to Rs 35000/- in last three weeks. This has been achieved with trading just one lot at any given time. Three month activity data maintained at  Stockezy page  reads as follows :-
  • Average return per trade : +13.36%
  • Average profit/loss per trade : Rs 6625.57/-
  • Average Investment per trade : Rs 49,600/-
  • Success rate : 100%
  • Total trades : 30
In keeping with the existing tradition of this exclusive club of stock futures trading at Stockezy, my subscribers again profited by trading Ambuja Cements August Futures. They entered trade on 03 Aug 2010 as per my recommendation and exited with profit ranging from Rs 2000/- to Rs 4000/-. The link to the actual trade details with time stamp is here :

Thursday, August 5, 2010

Stock Futures Trading Made Ezy - Patni Computers

In stock futures trading one has to be constantly on the look out for exact entry point which is safe as far as downside risk is concerned. And it is also important to choose a trade in the perceived direction of the general market. That means if the general markets are perceived to go up then, choose to enter a buy trade in your selected scrip, and not a sell trade.

One of the most dependable methods to arrive at the exact buy point is the use of Fibonacci golden ratios to calculate the inflexion point in Elliot Waves. Only thing to remember is that calculated buy price is almost always little higher than the low that the scrip actually makes in trade. That is understandable since when it comes to a scrip falling in price, you will find panic buttons being pressed. This drags the actual prices a little lower than the Fibonacci calculated prices. In other words you need to put a little correction to the calculated price, while arriving at your exact buy price.

This little correction to be applied to calculated price was overlooked while entering trade of Patni Computers August Futures. We arrived at our calculated price of 470. So on 29th July I recommended to my subscribers at to buy in the range of 470/473. But actually we should have given a buy in the range of 460/463, after applying due correction. On that day Patni made a low of 459.

Next day we exited trade at 480. In this fashion my subscribers managed to garner profit ranging from Rs 2700/- to Rs 3700/-. That means a return of 6% to 8% on an investment of Rs 47,000/- in two trading sessions. We lost the opportunity to  make Rs 2500/- more from this position, simply because we didn't apply the correction to calculated buy price. Anyway, check out the link below for actual trading details as it happened during market hours. Do scroll right down to the end of comments to find Patni trades, since the same page was initially used to trade HCL Tech in a hurry.

Wednesday, August 4, 2010

Stock Futures Trading Made Ezy - ACC

Trading stock futures can be very rewarding if you take care of following points:-
  • You need to be meticulous in pinpointing the exact entry point.
  • The entry point has to be such that even if the scrip trades lower after your entry, you should be certain to get your buy price in technical bounce. In this fashion you will never be making any loss. This is very important because stock futures trading is all about protecting your capital. If you can do that, then profit will automatically accrue.
  • In selecting such an entry point you need to have tons of patience. It may so happen that your calculated entry point may not be traded for a particular scrip that you were tracking. But that's all right. 'No trade' is better than entering a trade at the wrong point, especially in stock futures because there is a heavy toll to pay once a trade goes wrong. Mark to market (mtm) requirement in stock futures can easily take a trader out of the market, in case of incorrect entry.
These are the points which are always kept in mind while entering trade in stock futures. Let us take the case of ACC July Futures which was recommended by me to be bought at 796/802 on 22nd July at  . My subscribers bought within that range and the day low on 22nd July was 799. Next day the low made by this scrip was 795. This is a live example of fine tuning the exact entry point. In the next trading session this position was squared off at 820, This enabled my subscribers to make a profit in the range of Rs 4500/- to Rs 4750/- with a return in excess of 11% from an investment of Rs 40,000/- in three days. For details of exact trade as it unfolded during market hours, do click the link below:- .

Tuesday, August 3, 2010

CNBC Awaaz Programme Showing My Picture

Its the video clip of CNBC Awaaz programme flashing my picture on 1st and 2nd Aug 2010. This programme was featuring new entrepreneurs wherein community investment portal "Stockezy" was covered. Since I am a stock Guru at Stockezy, my photograph was shown in this programme.

Sunday, August 1, 2010

See Me On CNBC Awaaz Today At 8.30PM IST

I am happy to share this piece of news with all my followers, friends and regular visitors to my blog. You can see my photograph being flashed in CNBC Awaaz today ie 1st August at 8.30PM Indian Standard Time. Actually this programme is a repeat telecast and was first televised yesterday and again at 8.30AM today, but I have been unable to inform everyone about it before. Do pardon me for that.

Actually this programme is titled "CNBC Entrepreneur" and inter alia community investment site of "Stockezy" has been featured. Since I am one of the Stock Gurus at my photograph has been shown in the TV programme. I just wanted to share my joy with you all since this is my first ever exposure on television.