Sunday, 14 December 2014

Riding the perfect storm with kepcorp put warrants - the night two major crash predictions came true : Crude Oil and Dow Jones Industrial Index

Friday night 12 Nov saw the combination of  our  bearish predictions of 2 major index futures  came true. 

One was the crude oil crash , the other the dow crash. 

 what did sgxswingers do to profit from the perfect storm that result from the combined action of these two bearish events  ? Read on....

As readers of this blog would know, I  have been calling for oil price to fall to $57-$58  since 27 Nov_(click here for 27 nov post  )  when it was hovering around $72-73 juz hours before the opec meeting which decided on no production cuts.. 

Below is a time-stamped picture of that call in facebook and regular affirmation of it in both our student chatroom & facebook.
Well , friday night ,  crude oil  did exactly that , hitting our target of $57.5 (  $57.34 in fact ) before bouncing a little.

Any one who had shorted Crude at $70 or higher at time of that call on 27 Nov would have reaped profits of  180% returns or higher  when it crashed to our $57 target  at 10% margin in a margin-trading account.

Of more significance to local players with only exposure to local sgx stocks to play with  is the shorting of local oil stocks. 

We shorted local oil stocks before the opec meeting ( click here for last post)  and close the shorts 5-6 days after , where we enjoyed 50% -100% returns with our CFD shorts  and purchases of kepcorp put wrts( click here)

on friday 12 dec, we initiated new shorts by buying even more kepcorp put wrts despite kepcorp announcement of share buybacks few days earlier.  More of  this later.

On Friday morning 12 dec  at about 957 am, I told the student chatroom that the Dow Jones is about to crash, 

 At 5pm , I reaffirm my bearish stand by telling  them it is going to crash " red red "..( see below)

True enough , the dow crashed " red red " to close down 315 points friday  nite( see below) .

so what decisive trading action did we take  in anticipation of  these 2 bearish predictions that came together in a perfect storm  ?.. 

on friday sgx hours , we again bought kepcorp put wrts which should hopefully  profit handsomely  next week from  the combined fall of crude oil and dow friday night.

below are screen shots of those kepcorp put wrts purchases by students through cimb and poems accts. 

what will happen to them next week ?

 will our kepcorp put wrts bought on friday  turn green green or red red or flat flat  ? 

we will update u further on that next week.

post-mortem 15 dec : some students took profits on their kepcorp put warrants  , reaping 9% contra returns on broker's capital over contra weekend. 


stay tuned for more updates ..better still join our freebee chat  to get updates and calls live & interactive  for free.

To find out more on how we achieve such   consistency in precision swings over the years , attend our weekly free seminars on " Deciphering stock operator maneuvers & swing secrets " to join our freebee chat for free  ( click here  

for daily updates , join our FB sgx swingers corner ( click here).. 
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