Premium trades: 25 JANUARY 2012

Premium trade recommendations: 25 January 2012

Currency market

1.      Hold short April 2012 dollars at 51.60 (current 51.10). Let us unwind the short with long January 2012 dollars entered at 50.05 (by paying Jan/April at 105)

2.      Sell March 2012 dollars at 51.00-51.15 with stop at 51.25 and t/p at 50.30

3.      Buy February 2012 dollars at 50.00-49.85 with  stop at 49.75 and t/p at 50.60

4.      Hold Long EUR/USD at 1.2960 (low of 1.2952) with stop at 1.2925 and t/p at 1.3110

5.      Short EUR/USD at 1.3050 out at cost. Bad luck as market reversed from 1.3061 to our t/p of 1.2950. Now, sell at 1.3100-1.3150 with stop at 1.3175 and t/p at 1.2800

6.      Short USD/JPY at 77.25 out at cost. No trade from short side now.

7.      Buy USD/JPY at 77.25-76.75 with stop at 76.50 and t/p at 78.25

Interest rate market

1.      Long 10Y bond entered at 8.21% taken out at 8.10% (low of 8.08%). This was followed by post-policy one-way fall above 8.35%. Now, buy in two lots at 8.36-8.37 and 8.39-8.40 with stop at 8.41 for 8.21%

2.      Hold 1Y OIS received at 8.05% (current 8.03%). Add at 8.10% with stop at 8.15% and t/p at 7.85%. Saw a low of 7.91% before post policy reversal.

3.      Hold 5Y OIS received at 7.33% (current 7.35%). Add at 7.40% with stop at 7.45% and t/p at 7.15%. Saw a low of 7.21% before post policy reversal.

4.      Hold to Jan/Dec received at 273 (current 272). Add at 278 with stop at 283. Saw low of 260 before post policy reversal.

Commodity market

1.      Short NYMEX crude at 99.50 (current 99.00). Hold with stop at 100.50 for 95.50

2.      Short in Gold average at 1670 (current 1664). Hold with stop at 1690 and t/p at 1635

Equity market

1.      Buy in two lots at 5100-5075 and 5050-5025 with stop below 5000 and t/p at 5350

2.      Strategic investors to hold first lot entry at 4550 with trail stop below 5050. Add second lot at 5000-4975 for near term objective at 5500.

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