Premium trade update: 24 JAN 2012

Premium trade recommendations: 24 January 2012 (Review)

Currency market

1.      Hold short April 2012 dollars at 51.60 (current 51.13). Add at 51.45 with stop at 51.60 and t/p at 50.95

2.      Long January 2012 dollars at 50.05 (spot low of 49.98). Add at 49.95 with stop at 49.85 and t/p at 50.30. Combination of 1& 2 gives Jan/April premium of 155 paisa against current 103).

3.      Long EUR/USD at 1.2875 taken out at 1.2975. Buy again at 1.2975-1.2925 with stop below 1.2900 and t/p at 1.3075

4.      Sold EUR/USD at 1.3050 (current 1.2990). Hold with stop at cost and t/p at 1.2950

5.      Hold short USD/JPY at 77.25 (current 77.00) with stop at cost and t/p at 76.75

6.      Buy USD/JPY at 76.75-76.50 with stop at 76.25 and t/p at 77.25

Interest rate market

1.      Hold Long 10Y bond at 8.21% (current 8.15%) with stop at cost and t/p at 8.10%. Strategic investors can buy in two lots at 8.20-8.21% and 8.24-8.25% with stop at 8.26% for 8.05-8.0%

2.      Sell 10Y bond in two lots at 8.05-8.04% and 8.01-8.0% with stop at 7.98% and t/p at 8.19%

3.      Hold 1Y OIS received at 8.05% (current 7.91%). Add at 8.10% with stop at 8.15% and t/p at 7.80%

4.      Hold 5Y OIS received at 7.30% (current 7.23%). Add at 7.35% with stop at 7.40% and t/p at 7.05%

5.      Hold to Jan/Dec received at 273 (current 260) with stop at cost and t/p at 253

Commodity market

1.      Short in NYMEX crude at 100.50 taken out at 97.90. Short again at 99.50 (current 99.65). Hold with stop at 100.50 for 95.50

2.      Short in Gold average at 1670 (current 1674). Hold with stop at 1690 and t/p at 1635

Equity market

1.      Buy in two lots at 5000-4975 and 4925-4900 with stop below 4850 and t/p at 5300

2.      Strategic investors to hold first lot entry at 4550 with trail stop below 4850. Add second lot at 4925-4875 for near term objective at 5350.

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