Remember my post on shorting the dax and making 30% within 3 days with 5 times leverage? Well i went on holidays after that, that is why i did not post for 3 months but now i am back :) Turns out i picked the high to the day, then it made a fake breakout to test the channel and since then the DAX is correcting for 3 months now already! I will try to trade the DAX again in a few weeks when it turns up dramatically again and probably makes a new and maby final high by November this year! But first i want to enter a new trade. Remember when i warned from buying the Shanghai Composite Index? Well it almost doubled since then....wow! Perfect time to short it right? ;) So going short i will :) Balance: 108´028 and i invest half of it in puts on the SHCOMP @ 4967 with 2x leverage as usual I will trade this at least until August Hereby i short the SHCOMP (Chinese Stock Exchange) from today (17. June 2015) at 4967 and predict that within 3 months investors will be rushing to the exits so fast that the Shanghai Composite falls faster than a feather in a Vacuum! Why? Because the buyers were all small retail investors who were opening brokerage accounts just for this trade and this usually only happens at the very top of a market. They were speculating for short term gains and therefore they will get spooked when prices fall and they will sell and rush to the exits......like everytime at the top of a bubble. I will say it again, dear Chinese investors, if you want to invest then buy US shares. But now is a bad time, wait for a correction. Around October is historically a good time to buy. While Europe collapses further the US Stockmarket will outperform especially for foreign investors who will have nice currency gains as the dollar rises and their currencies collapse. Yes this also works for those whose currencies are pegged to the Dollar (Middle East, Asia) as you should know how unstable pegs are longer term, just look at the Swiss Franc peg ;) |
AuthorPascal |