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e-Traders Club
Market Outlook
20 January 2011
Welcome to the year of the rabbit!
The stockmarket have rallied strongly for the past
year. We expect the trend to continue with
significant retraces along the way.
However, always be ready for a big dip because
housing worries continue to be the behind the
scene sentiment. The europe wide debt is also
weighing in. What if spain and portugal's debt
becomes untenable and follow ireland and greece's
woes?
At least europe knows that they are under severe
deficit and they are tightening and cutting
expenses left and right.
The problem is with the US. The government
continue to borrow money and incur deficits which
may proved disastrous. They don't seem to care.
Current US deficit is now $ 1.3 trillion and it's
estimated to reach $ 1.5 trillion in the middle of
this year. No wonder they are now threading
cautiously with china. They can no longer talk as
hard to china like what they used to do. China is
now the second largest economy and they are also
rapidly developing their military hardware. The
chinese president demanded to be treated as
equals and rightly so. No matter how US tries to
deny it, we believe that they are seriously
concerned.
What matters to us traders is we should be aware
of these events that may impact the prices of
stocks that we trade. Just make sure we trade
our system religiously but mindful of the abrupt
change that may happen. We should be open
minded and ready to exit when the market goes
against our position.
If traders will strictly adhere to our trading rules
we can confidently make profit year in year out.
Happy trading and a profitable year to everyone!
08 January 2010
Happy New Year !!!!!
It's really a happy new year. We enjoyed
tremendous profits last year and we look forward
to a more positive year using our proven trading
systems.
As we have intimated with our selected members,
March last year was the bottom (at least for now).
We took a calculated risk and hit a home run. We
bought one year call options with Apache Corp
(APA)at $66 and it's now trading at $ 100 +. We
also thought that Interoil (IOC) was very cheap at
$10 and we bought hundreds of contracts and it's
now trading at $ 82 !!!!.
We have now liquidated our positions and we are
threading very carefully since IOC is severely over
valued. It's financial performance doesn't merit its
current price. It's very expensive and by the looks
of it, if you're buying it as a business, it will take
you roughly 280 years to recoup your investment.
We're playing it safe and we bought call and put
options at IOC and we're now relaxed. No matter
what this stock does, we don't care anymore, we
will make money whether it goes up or down. This
is the beauty of stress free trading! We cover all
possible directions of a stock.
The global economy is still shaky. Although
investors are now becoming optimistic, it can still
spiral out of control. That's why we're prepared.
Our positions are carefully hedged so that no
matter what the market does this year, we're
confident of another home run!!! Meanwhile, our
members who religiously follow our trading
strategies are smiling on their way to their bank.
Happy trading!!!!
10 March 2009
The Dow lost almost 50% of its value since last
year. It's currently in the 6,800 range. How far
can it go?
For the past third week the major market indices
saw significant losses. There seems to be no end
in sight.
However, we all know that the market operates in
cycles, there is a good chance that there will be a
strong rally in this bear market in the middle to
end of this year. For those who wish to take
advantage, don't rush yet, wait for confirmation
before you enter.
But for those trading options, we can't be
bothered, it's less risky since we will enter a trade
once we expect an increase in volatility. We will
trade on all possible directions. Once the market
moves, it will result in increased value of our
options.
Global conditions are gloomy, 12.5 Million jobs
have been lost as of last month in the US and 1.2
Million jobs will be lost in UK alone. In London for
example, many retail outlets and businesses are
closing at unprecedented scale. Just 2 years ago,
it's so difficult to get a shop if you want to open
one. Now every other corner is vacant. Giant
retailer Woolworths closed down after decades of
dominance. It seems no one is safe.
But which side would you want to be? Because
even in this recession, there are still traders who
make profit and if you keep moaning and blaming
the banks, the government or everyone for the
mess, it won't solve your problems. It's time to
take control of our finances and future. Educate
yourself and earn money regardless of any market
conditions.
The global economy is not getting any better
soon. So be calm and be prepared. Stop watching
from the sidelines....let's all be players and take
control of our future.
22 October 2008
Our outlook earlier this year has been right on the
money. Our traders who used our market
outlook as guidelines were now banking their
profits. However, the oil has reversed strongly in
recent weeks due to weaker demand and looming
recession. We experienced severe crashes with
the Dow Jones plunging 800 points in just one day
and it shed more than 3,000 points in a few
months!
Despite the congress bail out of $ 700 Billion, and
the world's concerted effort to save the whole
financial system, investors are still hesitant to
come back and invest. There's so much bears
around. Until the housing prices stop plunging,
the problem will not disappear. We agree with
George Soros view that we should let the failing
companies fail and start fresh. There will be
severe destruction of wealth but that is the only
way to go in order to have a clean slate.
We expect the turbulence to last for 2 more years,
the bottom may not be in the corner yet but with
the government's continuous involvement, we just
hope this nightmare will be over soon for most
investors.
Our non-directional trading strategy is immune to
these gyrations of the market. We trade on all
possible directions of the stock. This means
wherever it goes, up, down or sideways, we
continue to make money.
We prefer to trade stress-free these days and
leave the prediction to fortune tellers.
14 March 2007
Our stategy for the year is to short US and
European stocks while we go long on oil. Oil
prices has doubled since last year and there is no
sign of reversal for the short term.
Daily oil demand is 87 million barrels and supply is
only 85 million. It's no surprise then that oil price
will keep on increasing till the end of this year.
Supply is very tight and with the hurricane season
just lurking on the sides, the trend for oil is bullish
It's a no brainer then that we have been holding
long positions on selected oil companies and
substantial profits have been made. However be
careful when entering long positions on oil. You
might buy on a price that is about to fall and you
will lose money instead of making profits.
We are shorting some airline stocks and we also
made a killing here. With oil at prohibitive prices,
operations costs will spiral, inflation will go up and
less people will travel for holidays this summer.
Several airline companies have already lost an
average of 70% of their value since last year. This
is not about to reverse in the near future.
Credit crunch in the US is not yet over, house
prices will continue to fall in the next 2 years.
Financial institutions will continue to put up with
foreclosures and negative mortgages. Severe
distraction of wealth will occur before the US
economy starts to move again.
We are seeing a global decline in US dominance,
investors are fleeing the US dollars. As US
economy falters , China and India will rise. The
world no longer catches cold as US sneezes. A
new world order will arise amid these
developments. And how this will unfold remains to
be seen depending on the policies of the new US
administration on November.
For now, it's gloomy for US and European stocks.
Gloomy for those who only know how to buy and
hold. But very profitable for the traders who
know how to buy and short!
Welcome to the year of the rabbit!
The stockmarket have rallied strongly for the past
year. We expect the trend to continue with
significant retraces along the way.
However, always be ready for a big dip because
housing worries continue to be the behind the
scene sentiment. The europe wide debt is also
weighing in. What if spain and portugal's debt
becomes untenable and follow ireland and greece's
woes?
At least europe knows that they are under severe
deficit and they are tightening and cutting
expenses left and right.
The problem is with the US. The government
continue to borrow money and incur deficits which
may proved disastrous. They don't seem to care.
Current US deficit is now $ 1.3 trillion and it's
estimated to reach $ 1.5 trillion in the middle of
this year. No wonder they are now threading
cautiously with china. They can no longer talk as
hard to china like what they used to do. China is
now the second largest economy and they are also
rapidly developing their military hardware. The
chinese president demanded to be treated as
equals and rightly so. No matter how US tries to
deny it, we believe that they are seriously
concerned.
What matters to us traders is we should be aware
of these events that may impact the prices of
stocks that we trade. Just make sure we trade
our system religiously but mindful of the abrupt
change that may happen. We should be open
minded and ready to exit when the market goes
against our position.
If traders will strictly adhere to our trading rules
we can confidently make profit year in year out.
Happy trading and a profitable year to everyone!
08 January 2010
Happy New Year !!!!!
It's really a happy new year. We enjoyed
tremendous profits last year and we look forward
to a more positive year using our proven trading
systems.
As we have intimated with our selected members,
March last year was the bottom (at least for now).
We took a calculated risk and hit a home run. We
bought one year call options with Apache Corp
(APA)at $66 and it's now trading at $ 100 +. We
also thought that Interoil (IOC) was very cheap at
$10 and we bought hundreds of contracts and it's
now trading at $ 82 !!!!.
We have now liquidated our positions and we are
threading very carefully since IOC is severely over
valued. It's financial performance doesn't merit its
current price. It's very expensive and by the looks
of it, if you're buying it as a business, it will take
you roughly 280 years to recoup your investment.
We're playing it safe and we bought call and put
options at IOC and we're now relaxed. No matter
what this stock does, we don't care anymore, we
will make money whether it goes up or down. This
is the beauty of stress free trading! We cover all
possible directions of a stock.
The global economy is still shaky. Although
investors are now becoming optimistic, it can still
spiral out of control. That's why we're prepared.
Our positions are carefully hedged so that no
matter what the market does this year, we're
confident of another home run!!! Meanwhile, our
members who religiously follow our trading
strategies are smiling on their way to their bank.
Happy trading!!!!
10 March 2009
The Dow lost almost 50% of its value since last
year. It's currently in the 6,800 range. How far
can it go?
For the past third week the major market indices
saw significant losses. There seems to be no end
in sight.
However, we all know that the market operates in
cycles, there is a good chance that there will be a
strong rally in this bear market in the middle to
end of this year. For those who wish to take
advantage, don't rush yet, wait for confirmation
before you enter.
But for those trading options, we can't be
bothered, it's less risky since we will enter a trade
once we expect an increase in volatility. We will
trade on all possible directions. Once the market
moves, it will result in increased value of our
options.
Global conditions are gloomy, 12.5 Million jobs
have been lost as of last month in the US and 1.2
Million jobs will be lost in UK alone. In London for
example, many retail outlets and businesses are
closing at unprecedented scale. Just 2 years ago,
it's so difficult to get a shop if you want to open
one. Now every other corner is vacant. Giant
retailer Woolworths closed down after decades of
dominance. It seems no one is safe.
But which side would you want to be? Because
even in this recession, there are still traders who
make profit and if you keep moaning and blaming
the banks, the government or everyone for the
mess, it won't solve your problems. It's time to
take control of our finances and future. Educate
yourself and earn money regardless of any market
conditions.
The global economy is not getting any better
soon. So be calm and be prepared. Stop watching
from the sidelines....let's all be players and take
control of our future.
22 October 2008
Our outlook earlier this year has been right on the
money. Our traders who used our market
outlook as guidelines were now banking their
profits. However, the oil has reversed strongly in
recent weeks due to weaker demand and looming
recession. We experienced severe crashes with
the Dow Jones plunging 800 points in just one day
and it shed more than 3,000 points in a few
months!
Despite the congress bail out of $ 700 Billion, and
the world's concerted effort to save the whole
financial system, investors are still hesitant to
come back and invest. There's so much bears
around. Until the housing prices stop plunging,
the problem will not disappear. We agree with
George Soros view that we should let the failing
companies fail and start fresh. There will be
severe destruction of wealth but that is the only
way to go in order to have a clean slate.
We expect the turbulence to last for 2 more years,
the bottom may not be in the corner yet but with
the government's continuous involvement, we just
hope this nightmare will be over soon for most
investors.
Our non-directional trading strategy is immune to
these gyrations of the market. We trade on all
possible directions of the stock. This means
wherever it goes, up, down or sideways, we
continue to make money.
We prefer to trade stress-free these days and
leave the prediction to fortune tellers.
14 March 2007
Our stategy for the year is to short US and
European stocks while we go long on oil. Oil
prices has doubled since last year and there is no
sign of reversal for the short term.
Daily oil demand is 87 million barrels and supply is
only 85 million. It's no surprise then that oil price
will keep on increasing till the end of this year.
Supply is very tight and with the hurricane season
just lurking on the sides, the trend for oil is bullish
It's a no brainer then that we have been holding
long positions on selected oil companies and
substantial profits have been made. However be
careful when entering long positions on oil. You
might buy on a price that is about to fall and you
will lose money instead of making profits.
We are shorting some airline stocks and we also
made a killing here. With oil at prohibitive prices,
operations costs will spiral, inflation will go up and
less people will travel for holidays this summer.
Several airline companies have already lost an
average of 70% of their value since last year. This
is not about to reverse in the near future.
Credit crunch in the US is not yet over, house
prices will continue to fall in the next 2 years.
Financial institutions will continue to put up with
foreclosures and negative mortgages. Severe
distraction of wealth will occur before the US
economy starts to move again.
We are seeing a global decline in US dominance,
investors are fleeing the US dollars. As US
economy falters , China and India will rise. The
world no longer catches cold as US sneezes. A
new world order will arise amid these
developments. And how this will unfold remains to
be seen depending on the policies of the new US
administration on November.
For now, it's gloomy for US and European stocks.
Gloomy for those who only know how to buy and
hold. But very profitable for the traders who
know how to buy and short!
Bull or Bear? We're not concerned
of market direction but a strong
outlook helps in a way that we
know how strong the movement
will be.
of market direction but a strong
outlook helps in a way that we
know how strong the movement
will be.
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