Tuesday, July 26, 2011

Quick Review of recent predictions of stock markets,gold,silver,oil fund

All our recent predictions given for and during last week  have given profits based on recommended buy/sell targets. Gold and silver were predicted to correct mid week and rise before and after.Buy and sell calls gave profits at all points while silver corrected after moving $0.75 before correcting mid week by over 7%.

USO oil fund predicted to correct opened last week below the sell target   price but mid week corrected from "Sell target " range of $38-38.5 for over 70 cents correction before rising

       We want to single out last friday intra day call to make  since we have started giving calls based on buy/sell calls using options premium. however since premium quote is not always real time- some errors creep in as on last friday.

          We gave a call to buy SP500 call options at prices $1.5 and $3.5 lower than quoted price on cbot website for august monthly options strike price of 1335 when going price was quoted as $36.5 .however daily settlement records of SP500 strikeprice 1335 august series monthly options shows premium data as  open value of $24.75, HIGH of 29 (no 30s in price quotes) and low of 22. hence premium quoted was either obsolete or incorrect.Howver the call to buySP500 call options with a peak before 2pm as chart shows were profitable (if prorata adjustment in premium is made) and appox profit of $200-$250 per option was possible. sell call based on predicted correction did not meet price targets either for BA or SP500

In future we will give calls based on emini futures or call options premium though our prediction based  trading strategy is suitable for options trading with high or no stop losses.

To show the effectiveness ( or lack of it) of our trading calls we will now launch $20000 trading capital account which will close after loss of $7k.

The fund will trade in Indian and US markets, gold,silver,commodities.Trading fund can be smaller but is required for possible  margin requirement and weekly lockin simultaneously in US and Indian markets 10

At times we will use the ration of 10:7 for trading /calculating profit/ loss on emini futures ( every ten point change in dow or sp500 or nasdaq 100 gives 7 point change in futures value . more rules will be added and put separately on different page

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