Our Wishes For Bad New Year

As we continue to short the broad markets we want to wish everyone in the market shorting it hard as we have recommended a most bad new year (for the markets).
So far our wishes have been fulfilled.

The Option we explicitly recommended on December 12. The OMX 1060 put for January 25, 2008 we had at SEK 20,25 on December 12. It is now trading today at SEK 59. A 200% gain in three weeks. We are to say the least very happy with that contract.

We are however confident that the market will fall more. This is just the beginning.

The carefull investor will now start to take som profits on these contracts and prepare to buy longer put contracts on a bullish day on two or three, the more bullish days in a row the better the entry – you decide how long you want to sit. Buy puts when the greed is back on the street, you’ll know by the sentiment. If the FED lowers interest rates, that will be a bull day and a good day to buy some January 2009 put contracts.

We will recommend getting all out of this contract soon, most likely within the next 10 days. At SEK 81 we will sell all regardless. That will be 4 times our money.
The short term movements in the market are allways very hard to predict so we will not want to sit on the contract to maturity on January 25, we will sell either way at least a week before.

So we repeat that we wish everyone shorting the market a very bad new year.

For the sake of order:
For your personal lives, your families, the world at large and world peace we wish you a great 2008.
May luck come your way.
But for the markets, they are way to high and will come down.

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