Premium trades: 02 FEB 2012

Premium trade recommendations: 02 February 2012

Closed out trades:

1. Short NIFTY at 5180 stopped out at 5225 (missed buy entry at 5150 with low at 5159)
2. Short EUR/USD at 1.3100-1.3125 stopped out at 1.3150 (held well at earlier buy level of 1.3075-1.3025 with low of 1.3023)
3. Received Feb/Dec premium at 244 converted into outright sale of December 2012 dollars at 52.40 by selling February 2012 dollars at 49.96 (high of the day at 49.97)

Currency market

1. Hold on to “short” December 2012 dollars; first lot at 52.80 and second lot at 52.40 (close at 52.05). Watch t/p at 51.70 with trail stop at 52.25
2. Buy February 2012 dollars in two lots at 49.15/49.00 with stop below 48.85 and t/p at 49.65
3. Sell EUR/USD in two lots at 1.3325/1.3375 with stop above 1.3400
4. Buy EUR/USD in two lots at 1.3025/1.2975 with stop below 1.2950
5. Hold on to long USD/JPY entered at 76.00. Add at 75.50 with stop below 75.25 and t/p at 78.25

Interest rate market

1. Received 1Y OIS average at 8.08% (low of 8.10% and close at 8.14%). Add at 8.20% with stop at 8.25% and t/p at 8.05%
2. Received 5Y OIS average at 7.33% (low at 7.24% and close at 7.31%). Add at 7.37% with stop at 7.41% and t/p at 7.20%
3. Buy 10Y bond in two lots at 8.20-8.21% and 8.23-8.24% with stop at 8.26% and t/p at 8.06%
4. Sell 10Y bond in two lots at 8.05-8.04% and 8.02-8.01% with stop at 7.99% and t/p at 8.19% (yesterday’s sell recommendation was not put in market as market opened with big gap at 8.12% below the stop level of 8.14%)

Commodity market

1. Buy Gold in two lots at 1730/1720 with stop at 1710 and t/p at 1760 (narrow miss; low of 1732 followed by spike into 1750)
2. Sell Gold in two lots at 1760/1770 with stop at 1780 and t/p at 1730
3. Strategic investors can buy in three lots at 1730/1710/1690 with stop below 1680 for 1790
4. Long NYMEX crude average at 98.5 (high at 99.50 and current 98). Hold with stop below 97 and t/p at 101.5
5. Sell NYMEX crude in two lots at 102/103 with stop at 104 and t/p at 99.

Equity market

1. Buy NIFTY in two lots at 5200/5150 with stop at 5125 and t/p at 5350 (yesterday missed entry by 9 pip before hitting t/p at 5245)
2. Strategic investors to buy in 3 lots at 5200/5150/5100 with stop below 5050 for short term objective at 5650 (risk of 100 points against reward of 500 points).

Good luck.................Moses Harding