Shorting against Central Banks

GuluGulu

Well-Known Member
#1

DSM

Well-Known Member
#2
Thanks.... very important and informative article. Who would have thought that Central banks would 'be into equities'? So it seems the bubble can only grow... till such time that it BURST!!

This is a good piece of information that could be beneficial.

Those who are shorting the markets, chances are, you are shorting it against the central banks. Central banks all over the world are buying S&P500 futures and options and they now extended this until 31st december 2015, another 13 months.

So, don't short, instead buy on dips. Here is the link for original article and exhibit.

http://www.zerohedge.com/news/2014-12-03/central-bank-buying-sp-500-futures-extended-until-end-2015
 

GuluGulu

Well-Known Member
#3
This means, even if Nifty takes a nose-dive few hundred points, we can happily buy without fear; as well as not bothering about our loss-making positions (if we have bought at higher), because, we shall definitely get our price in days to come.

This also means, if we get another 13 months, we shall definitely be able to make tons of money, if played intelligently, by buying at support levels.
 

DSM

Well-Known Member
#4
Just my view GG, The market has run up, and Dec-31 should see peak valuations for short term. The Mutual Fund industry and the Hedge Funds have their bonuses determined by the performance, so there should be an upmove till that date. Thereafter, we can expect profit booking. There is talk in the market about new India Specific funds garnering corpus to invest in 2015, so that too will add liquidity. However, market rarely is one way street, and though over a 5 year period, we can expect very good return and momentum, till then there will be times when the market will give of some gains (and shaking off weak hands) in my view. So we have interesting times ahead....

This means, even if Nifty takes a nose-dive few hundred points, we can happily buy without fear; as well as not bothering about our loss-making positions (if we have bought at higher), because, we shall definitely get our price in days to come.

This also means, if we get another 13 months, we shall definitely be able to make tons of money, if played intelligently, by buying at support levels.
 
#5
This means, even if Nifty takes a nose-dive few hundred points, we can happily buy without fear; as well as not bothering about our loss-making positions (if we have bought at higher), because, we shall definitely get our price in days to come.

This also means, if we get another 13 months, we shall definitely be able to make tons of money, if played intelligently, by buying at support levels.
Well, according to your analysis, it is a good time to buy.
 

GuluGulu

Well-Known Member
#6
Took a pair trade of NF and BNF as stated in earlier thread and waiting to go long more around 8170 levels for a target of at least last NF high...
 
#7
Well, my friend.. I guess this is a tricky time to think about world markets..

Russian crisis has made matters extremely tricky in the world economy.. One the one side, we have Russia which has spiked interest rates by 650 basis points over night, and on the other side we have countries like China and Japan which have crashed interest rates..

In such a situation, what do you think the central banks are doing?

In my opinion, it is near impossible to second guess what they would do without adequate info.. But what I do know is that ALL the central banks are not in unison
 

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