Fasten Your Seat Belts

Though it is difficult to say anything like this these days, but still I am inclined to say this; Fasten your seat belts. I hope you had sufficient time to prepare for hedging as I shared my “heads-up” after Thursday close last week. As of this writing Dow futures are down almost 200 points, that’s little over 2%. The losses were widespread across Asia, (Japan Nikkei 4.5%, Hong Kong down 4.7%, India;s Sensex Down 4.5%, and Singapore’s straits times little over 4%).

For OPNewsletter, we are comfortably positioned for the sell-off. In fact for the April’09 portfolios we are up +6.8% (x-commissions) and we have invested nearly little over 34% of assumed 10K capital. Entering into the Friday, we were relatively short delta so this sell off might offer some nice opportunities (you may sign-up for the waitlist here)

As the week starts, there is lot going on. GM’s Rick Wagoner Forced Out After Failing Obama Scrutiny; Geithner Says Some Banks to Need `Large Amounts’ of Aid and Warns Against Tax. Financial sector seems to be opening on a weak note unless Mr Geithner changes his remark (remember the reserve currency remark). I think the stage is probably being set for the next round of funding request.

The “large amount of aid” news is probably shaking confidence world-wide and fear might be resurfacing. Soon we shall also start preparing for earning seasons. So friends, a lot more coming on way, fasten your seat belts and be prepared.

Trade carefully, Trade Profitably, OP





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