Monday, February 16, 2009
10:26 am - Market Outlook by Bill Wermine
Dear Traders,
NIgel Foo, head of research for CIMB, gave an insightful presentation to our Traders Club Saturday. Using his charts, Elliot Wave and the Joseph Theory he projected a KLSE rally to 1000 in the next 3 months and then a collapse to 450.
This will be in conjunction with a world wide liquidation of stocks, property and commodities. His Dow target is 1500 !
He is forecasting a major depression to rival the 1930 depression.
As traders we focus on the process. Nigel may be correct in his forecast but in the meantime we must focus on what is happening now.
If you know how to identify price and volume spread bars that signal no demand, hidden potential buying, hidden potential selling, tests and upthrusts you can exploit any scenario. If you understand stage analysis in conjunction with volume spread analysis you have in your hands the tools to be a step ahead of the crowd and know when to be in cash, be long shares or be a short seller of futures.
If Nigel is correct you can make a fortune short selling the CI futures, US shares, commodities and CPO.
On Thursday and Friday , I am taking a business trip to Singapore to visit Man Group. Will be speaking with one of their executives who will review their strategies in a general way. If you have any questions about your Man investments I am happy to relay this information to them and will get back with you.
Man AHL was number 20 in terms of performance out of over 9000 hedge funds in 2008 and their general strategy is trend following using mechanical models which take emotions out of the trading process. They also avoided CDOs, sub prime mortgages, Fannie May bonds etc. What I will ask them is why they avoided these instruments of financial distruction while Citi Bank, Merril Lynch., AIG, Lehman and many other famous institutions heavily participated and lost their shareholders money.
What did Man know that the biggest financial institutions with the most famous traders, massive capital and smartest money minds in the world not know ? Even Alan Greenspan said in an interview he was fooled.
Attached is a paper I promissed to deliver at our Traders Club Saturday but because of time constraints did not. It is my outlook on China and how to profit from it. If you have any questions I am happy to share my trading strategy on this opportunity. Phillip offers 3rd party funds which you can participate in your Singapore Wrap Account. When I am in Singapore next week I will research the best opportunity for you.
In any case, we must have an exit plan on this should we particapate in this.
.
If you have any questions about your EPF, Direct Portfolio or Man investments with me please call my partner Martin at 2084 9999 ext 3533 or HP 012 207 8633 as I will be out of my office until Tuesday 24 Feb. Fund Manager Jeffery at 2711 0290 can also any of your questions regarding your position.
NIgel Foo, head of research for CIMB, gave an insightful presentation to our Traders Club Saturday. Using his charts, Elliot Wave and the Joseph Theory he projected a KLSE rally to 1000 in the next 3 months and then a collapse to 450.
This will be in conjunction with a world wide liquidation of stocks, property and commodities. His Dow target is 1500 !
He is forecasting a major depression to rival the 1930 depression.
As traders we focus on the process. Nigel may be correct in his forecast but in the meantime we must focus on what is happening now.
If you know how to identify price and volume spread bars that signal no demand, hidden potential buying, hidden potential selling, tests and upthrusts you can exploit any scenario. If you understand stage analysis in conjunction with volume spread analysis you have in your hands the tools to be a step ahead of the crowd and know when to be in cash, be long shares or be a short seller of futures.
If Nigel is correct you can make a fortune short selling the CI futures, US shares, commodities and CPO.
On Thursday and Friday , I am taking a business trip to Singapore to visit Man Group. Will be speaking with one of their executives who will review their strategies in a general way. If you have any questions about your Man investments I am happy to relay this information to them and will get back with you.
Man AHL was number 20 in terms of performance out of over 9000 hedge funds in 2008 and their general strategy is trend following using mechanical models which take emotions out of the trading process. They also avoided CDOs, sub prime mortgages, Fannie May bonds etc. What I will ask them is why they avoided these instruments of financial distruction while Citi Bank, Merril Lynch., AIG, Lehman and many other famous institutions heavily participated and lost their shareholders money.
What did Man know that the biggest financial institutions with the most famous traders, massive capital and smartest money minds in the world not know ? Even Alan Greenspan said in an interview he was fooled.
Attached is a paper I promissed to deliver at our Traders Club Saturday but because of time constraints did not. It is my outlook on China and how to profit from it. If you have any questions I am happy to share my trading strategy on this opportunity. Phillip offers 3rd party funds which you can participate in your Singapore Wrap Account. When I am in Singapore next week I will research the best opportunity for you.
In any case, we must have an exit plan on this should we particapate in this.
.
If you have any questions about your EPF, Direct Portfolio or Man investments with me please call my partner Martin at 2084 9999 ext 3533 or HP 012 207 8633 as I will be out of my office until Tuesday 24 Feb. Fund Manager Jeffery at 2711 0290 can also any of your questions regarding your position.
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