Friday, June 10, 2011

Were You Reading This In June?













The above Picture was sent few times to our subscribers, reminding one more time this morning, that a (mini) crash was possible in the mrkets. OK, next(:- . WELL, we did crash today or just a first day of it? Our Readings warn us about crash completion. For Subscription to Our TAILORED SERVICES, please make a payment to http://www.paypal.com using my id of bchikvash@aol.com in the amount of $250.


Note: Asset Allocation Model, has just repurchased 2% of assets, at SPX=1265, while sold the same at SPX=1339( In February 18 2011) for gain of 74 SPX points. That makes our 18 Month gain over 740 SPX Points!!! and 26 Month gains about 1050 SPX Points !!!! Sorry, cannot help excitement. Did Somebody here ask about our performance. Ok then therein is the answer.

2 comments:

gorli said...

good morning, Boris. Under this crash scenario, won't the put option premiums be high? are leveraged ETFs like SDS, TZA better trades?
gorli

boris said...

Dear Gorli
Yes, under the crash scenario the put options will be overpriced
But
here is the issue.

Nobody really knows if crash will occure ot not? right?

So, market has not discounted the crash before the crash happened!

Do I make sense?
Of course, either way, one has payed very little to nothing for those worthless optiosn( I mean that is what one has to buy).

So, what will happen is, that under the big crash scenario, it would not have been discounted and mone will be made.
If minit crash happens, one will, most likely, make only a small amount of money
If no crash happens and market goes up 2% like today, only tiny amount is lost with options and there is 2% ( at least) loss with any of the short ETFs.

I hope this is clear.

We never risk too much to make money. But we seem to make it anyway?

Thanks for your question
Dearest Gorli