Crisis

Short S&P 500 Profits Big, Again

Short S&P 500 Profits Big, Again

We made several trades, which will term 'good't, his past week. One being our short GBPUSD trade(to the pip). Of course we don't publish all our trades; time is better spent managing our books and generating new ideas as the markets move with great velocity. We've had our hands totally full this week but we wanted to give readers a glimpse of how we managed to bag one of our largest winners on the SPX (S&P 500 stock index) despite the highly volatile environment.

All in all, an excellent trade on our part. We're happy with the risk and money management we exercised, and also how we dynamically readjusted trade parameters in light of new circumstances and information.

How We Traded The Correction, And Profited When Most Lost

How We Traded The Correction, And Profited When Most Lost

It's been one of the best weeks for us this year. Don't be mistaken, what the markets experienced over the last 5 days will go down in the history books as one hell of a ride. But as traders, we live for this type of events.

In the last 2 weeks, most retail traders have lost money, or even completely blown their leveraged trading accounts. If you're reading this and are one of them, this piece is for you. In such markets, you need to know what you're doing. Most retail traders were utterly clueless and were gambling. It's hence no surprise that so many lost.

It was a good week. There's no denying that. We learned more from the past 2 weeks than the last 6 months collectively.

But one week doesn't mean anything in the grand scheme of things. Performance must always be evaluated over time. It just so happened that August was a month where most were concerned about the return of capital, and not the return on capital.

August Outlook: Opportune Times

August Outlook: Opportune Times

The Chinese proverb that opportunities lie in crises applies like calculus to a differentiation problem. A hot knife through butter reveals the soft innards of the markets, but it also brings fire sale prices to certain markets worthy of our consideration. This is precisely what a serial opportunist is looking for; and in our eyes, he would have found several.

The two top most seismic episodes in recent history has to be the alpha of Greece, and the omega of China. These dualities have caused mayhem in asset pricing across the field, having affected not just regional but global markets.

The trend is always our friend when to comes to trading and portfolio management. Our books have been positioned in such a way that they welcome continuation of bellwether trends. We certainly see the recent flares in cross asset volatility serving as a much needed shakeup.

Frothy prices have leveled off somewhat, and the market is certainly playing it more cautions now. All these are textbook indications of trend continuation, and is healthy for everyone in the medium term.

 

How To Trade A Greek Event

How To Trade A Greek Event

4 days from now on the 30th of June, Greece will face a €1.5bn payment to the IMF. After having been pushed back by slightly over 3 weeks, this deadline now stands as a menacing giant over the shuddered Greeks.

This week's talks have seen no real progress, leaving the prospect of a Grexit, short for a "Greek Exit" from the Euro Zone, sky high.

Negotiators will realistically have until Monday to ink the paper which will allow withheld bailout funds to be released to the bankrupt nation. If no deal is reached by then, things will get very ugly very quickly.

In this short primer, we will prime readers for a Greek event. With the immediacy of this event risk, traders that fail to plan ahead risk having their books burnt by the volatility that is to come. In such a situation, preparedness is paramount.