Super Hero Breaks His Silence

Finally. after days of strange silence, the Super Hero spoke again. He threatened to unleash his superpowers(read throw money at the economy which a lot of people call as QE3) and the market rejoiced and rallied. Risk off trades were off the table and risk on trades were in vogue again.

In all this, the major gainers have been Precious Metals. Gold and Silver have staged a spectacular rally. With Govts in a mood to continue to print money and throw more money at the economy, the only real hedge against debasement of paper currencies is Gold and Silver.

Admist all this, I am condemned to trade Nifty, when the real drivers of returns is this extremely loose money policy which can be better played by investments across assets rather than just one Index. As in life, in trading too, one has to make do with what one has and not with what one will rather have.

As of yesterday, I was short the Nifty as per my STT and long the Nifty as per LTT. The net result is that I am net short 1/3 of my maximum possible quantity on the Nifty.

Current Position   STT Short  LTT NIL (-2/3 + 1/3 = 1/3 of my max limit short)

                                                                           

Possible Trades

TradeI LTT: Cut long < 5500 (-2/3 + 0 = 2/3 short)

TradeII LTT: Go Short < 5446 (-2/3 -1/3 = 100% short)

TradeIII STT: Cut Short and Go Long > 5624 (2/3 + 1/3 = 100% long)