India Wields Its Monetary Policy Axe… But Can The Country Stave Off Recession?
October 24, 2008
Friday, October 24, 2008; Issue #569
Guest Editorial by William Patalon III, Executive Editor, Money Morning & The Money Map Report
Editor’s Note: As the U.S. stock market continues to wreak havoc with investors’ portfolio and stress levels, you can bank on our friends at Money Morning taking a more global approach to investing. Earlier this week, Executive Editor William Patalon enlisted our very own Investment Director Karim Rahemtulla’s expertise for this article on the Indian economy and stock market. The Money Morning team believes the world is in the middle of the greatest investing boom in 60 years and is always searching for the most explosive opportunities in the U.S. and around the world. So when you’ve finished reading the article, be sure to check in with the rest of their insights here.
Martin Denholm, Managing Editor, Smart Profits Report
India’s Central Bank In Recession-Busting Model
With the Reserve Bank of India’s surprise interest rate cut on Monday, this may actually be the first time ever that India is ahead of the monetary policy curve.
That’s according to Karim Rahemtulla, speaking in the wake of the Reserve Bank of India cutting its overnight lending rate from 9% to 8%, as the country makes a strong move to avert a recession.
The “surprise move” came days before a regularly scheduled meeting of its policy board and after the central bank reduced the cash reserve ratio by 2.5 percentage points to 6.5% - retroactive to October 11.
The so-called “repurchase rate” is the discount rate at which India’s central bank lends money to commercial banks in order to inject liquidity into the market
“By lowering rates, and thereby liquefying the system and offering stimulus to deflect slowing growth, India may be ahead of the curve for the first time in making the correct monetary policy decisions to prevent a recession which it cannot afford,” says Karim.
Without doubt, this is a country that is extremely eager to sustain its investment growth…
A $1 Trillion Market And The Fastest GDP Growth In 60 Years
In late May 2007, the Bombay stock exchange became the third emerging stock market (after China and Russia) to surpass $1 trillion in market value - a surge helped at the time by the nation’s fastest GDP growth in six decades, a flood of foreign investment and a strengthening rupee. On the day the index achieved that milestone, the 30-stock Sensex, closed at 14,508.21 - 1% below its then-record high.
As Karim states, “India has been one of the [world's] largest recipients of foreign direct investment, which accounted for the boom in the stock market over the past five years.
That was then - and this is now. And India’s rate cut this week demonstrates that…
India Feeling The Ripple Affect From The Credit Collapse
India clearly fears that the ongoing turmoil in the credit markets remains a threat - one that could plunge much of the global economy into a recession.
“A 100-basis-point cut is an indirect admission that not all is ‘hunky dory’ with the India growth story,” Nandkumar Surti, chief financial officer at JPMorgan Asset Management India Pvt. Bank in Mumbai, told Bloomberg. “One way to look at it is that the global problem has begun to affect us.”
Fluctuations in India’s bond yields this month were the widest in more than five years as the central bank took steps to ease a liquidity crunch. Ironically, just one day after the central bank cut rates for the first time in four years, an employee strike at the Reserve Bank of India shut down bond trading in Mumbai, leaving many traders unable to bet on additional interest rate reductions. About 25,000 employees of the central bank walked off their jobs to demand higher pensions.
And it’s not just India feeling the pinch…
This Crisis Is Global
As both JPMorgan Chase & Co. (JPM) and UBS AG (UBS) said the world economy is sliding into its first recession since 2001, evidence of the slowdown is apparent with China’s GDP growth slumping to a five-year low in last quarter. And in addition to India, Vietnam also reduced borrowing costs this week.
The near-collapse of the banking systems in both the United States and Europe this month prompted the International Monetary Fund (IMF) to throttle its worldwide GDP growth forecast for 2009 from an earlier estimate of 3.9% all the way back to 3% - a point the IMF itself has labeled as the dividing line between global expansion and a global recession.
After growing at an estimated rate of 9.3% in 2007, the IMF says India’s GDP growth rate may slow to 7.9% this year and all the way down to 6.9% next year.
The projection comes as the Indian stock market has lost over half its value this year, the rupee has fallen to new lows, and cash flow problems cripple banks.
On the bright side, India’s key wholesale price inflation number slowed more than economists expected to 11.4% in the week through to October 4 - a four-month low.
“We expect a further reduction in wholesale price inflation in the next two months,” Indian Prime Minister Manmohan Singh told lawmakers this week. “Nevertheless, we must be prepared for a temporary slowdown in the Indian economy.
So what next?
Despite The Downturn, India Is Upbeat
India’s commerce minister, Kamal Nath, told the BBC that he’s confident India can remain a strong force on the economic stage, arguing that the country’s growth rate was “not as yet” being threatened. Unlike its U.S. counterparts, none of India’s banks have gone bust due to the Asian country’s “stricter norms,” Nath assured.
Also key: Foreign-direct investment remains strong, and export growth soared 31% in September.
However, Karim argues that export growth could pose a problem: “India’s economy, while insulated somewhat from the global crisis because of its minimal reliance on outside trade, may still suffer from the current malaise because of its growing export sector. The rate cuts, which will likely be followed by more cuts, are being made to ensure India’s competitiveness by allowing rupee depreciation, which helps its strong outsourcing and tech sectors.”
That, in turn, will directly benefit such companies as Infosys Technologies Ltd. (Nasdaq: INFY). Wipro Ltd. (NYSE: WIT), Tata Motors Ltd. (NYSE: TTM) and global IT-services provider Satyam Computer (NYSE: SAY), Karim believes. Tata Motors recently gained global fame when it introduced a fully functional $2,500 car called the “Nano” for the India market.
India’s Finance Minister Palaniappan Chidambaram has asked parliament for approval to spend an additional $49 billion (2.4 trillion rupees) on rural jobs, food and oil subsidies in the year ending March 31. The aim is to provide a further boost to the economy, which has grown at a record 8.8% annual clip since 2004.
The China Equation
India’s leadership “must have been worried about global growth, big economies and [the fact that other key economies in] the region [are] slowing,” Sailesh Jha, senior regional economist at Barclays Capital (NYSE: BCS) in Singapore, told Bloomberg this week, referring to the GDP report for China: Hit “The BRICs” for Superior Profits?
Although central banks in the U.S. and Europe have pared interest rates to stave off a recession, only India and China among the so-called “BRIC” economies have joined global policymakers in that battle. Russia lowered its reserve requirement twice in a month, while Brazil reduced the measure four times in three weeks.
Back on October 8, easing inflationary pressures in China enabled its central bank to pare interest rates for the second time in three weeks. It reduced the one-year lending rate from 7.2% to 6.93% on the same day that the U.S. Federal Reserve, European Central Bank and three others lowered rates in unprecedented and co-coordinated worldwide action. China also reduced the proportion of deposits that lenders must set aside as reserves by 0.5 percentage points.
China’s economy, the biggest contributor to global growth, zoomed along at a 9% clip in the third quarter.
The Outlook For India
In a recent report, the Macquarie Research unit of Macquarie Group Ltd. said that Indian real-estate developers are facing a shortage of funds, which may slow demand for steel, cement and transportation products and services.
“The capital crunch has hit the real estate sector very hard,” Macquarie analysts Unmesh Sharma and Bharat Rathi said. “We believe the tightness will continue for a few more months, given the difficulty in raising capital through bank debt, equity markets and (more recently) private equity.”
The decline in demand is already showing in India. The nation’s output at factories, utilities and mines rose 1.3% in August from a year earlier, after a revised 7.4% gain in July, as rising borrowing costs have dampened demand from consumers.
Rajeev Malik, a regional economist with the Macquarie Group in Singapore, recently said that the “downside risks to India’s growth have increased, while the upside risks to inflation have receded. We expect inflation to continue improving, thereby facilitating a shift in the RBI’s monetary stance.”
Best regards,
William Patalon, III
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Sphere: Related Content3 Safe Ways To Invest In Technology… Despite The US Economy And Fuzzy Math
October 13, 2008
Friday, October 10, 2008: #565
by Paul Moore, Technology Specialist, Smart Profits Report
Technology and every other sector is doomed. Wait, no it isn’t. Just kidding; it is… kind-of.
CNBC is at it again.
Much like the overall stock market, “America’s Business Leader” is doing its best bi-polar impression that leaves people no closer to answers - and actually heading in the wrong direction instead.
On the one hand, the network is breathlessly creating confusion by generating even more fear about the economy and credit markets. But in the next breath, it’s busy highlighting positive data points for certain companies and constantly banging on about how the markets are oversold and we’re due for a rebound.
That sounds great if your job is to provide financial entertainment. But my job is to find ways for you to make money.
While we could get a rebound because the market is oversold, I’m becoming more convinced that we’re just as likely to have a crash before we see a meaningful rebound. By that, I mean a day where you wake up and find the Dow Industrials down 900-1,500 points in the morning session.
Heck, at its lowest point early this morning, the index was 697 points below Thursday’s close, so this scenario isn’t as far-fetched as you might think.
And there’s something that CNBC isn’t telling you…
Technology’s Fuzzy Math
Technology is unfortunately no different from every other sector out there. Between now and the time when the economic stimulus package kicks into high gear, corporate earnings are likely to be terrible.
Take IBM (NYSE: IBM) and SAP (NYSE: SAP), for example - two technology companies, where results were highlighted as being good considering the weak environment. Yet a deeper look at the numbers reveals a darker side.
SAP was the first and only large technology company to make a negative pre-announcement this quarter. On October 6, the firm announced that software and services revenue would be up 13% to 14% for the quarter on a year-over-year basis.
“Hmm… given the current environment, that’s not a bad number,” you may say.
However, buried in paragraph 3 of that same press release, the company announced that software revenue - SAP’s leading indicator - would only rise between 4% and 5%.
Unfortunately, management didn’t offer any guidance in the report so we don’t have much clarity on what the company sees for the fourth quarter. Clearly, the impact of the news hasn’t been felt yet, and with the lack of guidance, we’ll have to wait until solid numbers are offered on the earnings call in order to determine how bad the near-term situation is.
So how about IBM…?
Even Technology’s Sweetheart IBM Isn’t Quite So Darling
IBM has received praise among technology groupies and investors in general for pre-announcing a decent quarter, as earnings-per-share jumped 22% to $2.05.
The company also issued full-year guidance that indicates fourth quarter estimates are expected to be in line with the Wall Street consensus.
Like SAP, this appears to be a very clean quarter for IBM… on the surface.
Dig a little deeper into the press release, however, and we find a reason to pause.
The company also mentioned that its Free Cash Flow for the first nine months of the year was $6.4 billion and that its cash balance will be $9.8 billion. Again, these are healthy numbers on the surface, but if you make a conservative estimate about the amount IBM invested in Capital Expenditures during the third quarter, the Free Cash Flow number indicates that Cash from Operations actually dropped around 75% for the quarter.
It’s likely that the company used its balance sheet to close deals. However, the stock most likely won’t be penalized, since most sell-side analysts don’t look closely enough at the cash flow statement. After the earnings call, however, there is the potential for the stock to sell off.
3 Safer Ways To Invest In The Technology Sector
As I’ve noted in previous columns, I believe there are opportunities to buy technology stocks if you have a long-term outlook.
In the current climate, however, the best strategy to use is to buy the shares, then buy a put (known as a “married put”) as a hedge against the stock position.
You can also buy technology sector-specific ETFs, or a market index like the PowerShares QQQ Trust (Nasdaq: QQQQ), which eliminates the risk from a specific company.
As the market indexes eventually find a bottom and rebound, tech company shares - and indeed shares of other companies - will also stabilize over the next 12 months.
However, if a highly influential heavyweight company like General Motors (NYSE: GM), which plunged 33% to its lowest level since 1950 on Thursday, or Morgan Stanley (NYSE: MS) is forced into bankruptcy (despite GM defiantly stating that this won’t happen), there’s a real possibility that we could see a four-digit decline for the Dow Industrials index.
In sum, the longer-term trend is up but the path to stability may hide some sizeable potholes. That’s why it’s essential you give yourself the best chance to emerge from this mess with as few bruises as possible.
Take a look at the Xcelerated Profits Report. Our team of professional traders aims to show you how to not only stay protected, but also profit during these turbulent times, using the same investment strategies that Wall Street’s elite traders do in order to generate significant wealth. Check it out here.
Paul Moore
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August 7, 2008
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July 28, 2008
What is an alligator spread anyway?
Now That’s What I Call “March Madness”: The Commodities Sector’s Two-Week Rollercoaster Ride
March 31, 2008
Smart Profits Report: Commodities Corner
Monday, March 31, 2008
by Lee Lowell, Futures Options & Commodities Specialist, Smart Profits Report
From boom to breakdown in just two weeks!
If ever there was a great example of how volatile the commodities markets can be, and how fast they can move, the last two weeks just proved it.
Last time I wrote to you (March 17), most of the major commodities markets were booming and hitting all-time highs. But in just 14 days, we’ve seen a massive capitulation and sell-offs in those same markets.
Let’s take a look at some of the movers and shakers and see if we can figure out where things are headed from here…
The Crude Rollercoaster Continues
Take crude oil, for example. Perhaps in homage to St. Patrick’s Day, oil prices spent most of the time wallowing in green figures, as the price per barrel jumped to all-time highs around $111.
But in just three trading sessions, it endured a nasty $12 selloff. In dollar investment terms, that’s $12,000 per single contract alone!
But oil being the volatile commodity it is, the price came roaring back last week and recouped most of its losses, as it hit $108, before selling off once again to its current price around $100.65 a barrel. As I write this, that’s a loss that’s a loss of almost $5 a barrel in today’s session.
As you may know, I believe www.futuresource.com is one of the best websites for commodities prices and news - and you can graphically see oil’s recent volatility on this daily chart of oil futures.
With so many hedge funds and speculators in the oil market, it’s likely that they’ve been busily adjusting their positions to coincide with the end of the first quarter today. And there’s no reason to think the current volatility will end anytime soon.
Anything Oil Can Do, Gas Can Do Better
Natural gas is another big energy sector mover. And while oil grabs the bulk of the headlines, this market is even more spectacular.
For example, the front-month natural gas futures contract topped out at $10.365 per mmbtu two weeks ago. But within a few trading sessions, it got hammered back down to the $8.750/mmbtu level - a massive move of $16,000 per contract. Imagine if you were playing with 100 contracts…
And not to be upstaged by crude oil, natural gas also came roaring back just as fast. It has since regained a major portion of the selloff to its current level of $10.12/mmbtu. That’s another move of over $13,500 per contract. You can see these moves on this chart.
If you’re going to get involved in the energy market, make sure you stick with limited-risk option strategies like credit spreads. It will do wonders for your psyche!
Metals Lose Their Mojo
The metals market has also taken a few hard punches on the chin recently. In just a few trading sessions last week, gold and silver gave back all the gains they’d notched over the last month.
Specifically, gold managed to give up about $130 an ounce, silver got blasted for about $4.50 an ounce. At a glance, you can see that those are both big losses. But most media outlets never actually tell you what that means in dollar terms. So here you g A $13,000 dollar value per contract on gold and a staggering $20,000 per contract on silver.
Check out the gold chart here and silver chart here.
Hedge Funds Hold The Key
Many onlookers might hear about these tremendous upward and downward moves in the major commodities and wonder exactly why it’s happening. You can sum up most of it in just two simple words: Hedge funds.
I mentioned in my last update here two weeks ago that rampant hedge fund speculation is the main driver of such huge swings in price. And you can tie it to events in the stock market.
As you know, stocks have endured a miserable first quarter. Investors have barely been able to get a handle on their positions before the market lurches from one slump to the next. But as this news flashes across the television and Internet, remember that there are always folks looking to profit from it.
Cue the speculative hedge funds, eager to make some quick n’ easy money, as they withdrew their cash from the stock market and piled it into commodities instead.
Now, though, as the Federal Reserve rides to Wall Street’s rescue, slashing interest rates and assisting with the Bear Stearns bailout, stocks have recently enjoyed a bit of a brighter spell. And once again, the hedge funds are seeking to capitalize, yanking their money from those same commodities positions (at least for now).
Now, onto some “soft stuff”…
“Soft” Prices In A “Soft” Market
From buying fever to selling frenzy, the “soft” commodities have also endured their share of volatility. Just take a look at coffee, sugar, cocoa, orange juice and cotton and you can see the relentless selling over the past two weeks.
This isn’t something most folks think about while they’re downing their morning cup of java, but on a pure dollar basis, coffee has given up the most gains. As you can see on this chart, the price has sunk from $1.72 per pound all the way down to $1.26 per pound - a loss of $17,250 per coffee futures contract.
But it wasn’t alone. Sugar, cocoa & cotton have also given up sizable gains, with cotton giving up the most on a dollar basis at $12,000 per contract, as you can see here.
The Safest Way To Invest In The Commodities Sector Right Now
Two weeks ago, commodities were roaring ahead and few people saw such a major drop in such a short amount of time. But having done so, some of these markets may be approaching oversold levels, perhaps even heading down to support levels, where you could play a rebound with some small, bullish strategies.
If you feel like dipping into the commodities sector, remember that it can be a dangerous area for rookies who don’t know what they’re doing. As you’ve seen from the recent huge moves, you wouldn’t want to get tripped up and see your portfolio gets ripped to shreds.
You can mitigate this risk by sticking with limited-risk option strategies. And if you really want to cash in on these moves, you can always let me do the hard work for you and give you specific recommendations. That’s exactly what I do for my Triple-Zone Profit Trader subscribers on a regular basis.
For more details on that, plus how you can get your hands on my book - Get Rich With Options: Four Winning Strategies Straight From The Exchange Floor - check out my bio on the Smart Profits Report website.
I’ll catch you again here in two weeks.
Lee
Sphere: Related ContentOil And Gold Grab The Headlines… But Silver’s Another Major Mover
March 17, 2008
Smart Profits Report: Commodities Corner
March 17, 2008
By Lee Lowell
Futures Options & Commodities Specialist, Smart Profits Report
Editor’s Note: Last Monday, we kicked off Part I of a new Smart Profits Report feature - “Sector Watch” by our technical analyst, Jim Stanton. This week, we bring you Part II, with commodities expert Lee Lowell taking his turn in the rotation. With oil prices having hit $111 a barrel and gold over $1,000 an ounce, commodities are once again taking center stage, as many investors look to diversify and gain some relief from a damaging stock market. As a former pit trader and market maker at the NYMEX, Lee is a true insider - and better qualified than most to know the real forces moving these markets and show you the next moves. So without further ado, here’s Lee’s analysis of oil, gold - and one other market not receiving as much attention, but also making huge moves. Enjoy.
The Runaway Train That Is The Commodities Sector
With oil prices blasting past $111 a barrel last week (the price has since dropped over $4 today, back to around $106) and gold prices finally breaching the important $1,000 an ounce level, the commodities sector is still barreling along relentlessly.
So as our resident commodities guy, it would be remiss of me to not give you some analysis and guidance on these crucial markets that can not only move the commodities world, but also spill over and affect your stock positions, too.
While most of the media love to talk about oil and gold ad nauseum, the truth is that it’s not just those two products that are surging higher. Several other commodities are enjoying bullish runs. For example, wheat prices just hit an all-time high of $13 a bushel - almost twice as high as the previous high of $7, set 12 years ago.
While massive moves like this garner plenty of press attention and dinner party conversation, many investors don’t actually know that you can make some serious money from commodities - and in my experience at the NYMEX, often more money than from the stock market. So let me show you how and where the money is being made…
$111… And Rising
Without doubt, the crude oil market is grabbing most of the headlines at the moment. Having hit $111 per barrel last week, this is now the highest price ever paid for a “front-month” futures contract (i.e. one that trades just one month ahead, the closest to the current date).
Not only is crude making new highs almost daily, it’s also experiencing some extremely large intraday price swings. While oil used to trade relatively calmly during any given trading day, it’s now commonplace to see $4 a barrel swings from high to low during the day - just like we saw today. Such volatility can make or break traders, which in turn leads to more volatility. Here’s the current daily chart.
As you can see, oil prices have shot from $85 a barrel to $110 in just six weeks. While the media likes to talk merely about the price-per-barrel gain, in investor dollar and profit terms, that’s actually a $25,000 move on just one futures contract.
And it’s not just the obvious factors driving the price forward. Sure, we’re always likely to have some kind of turmoil in the Middle East (or at least potential for turmoil, which can keep prices high, too). But this has been known and priced in for some time now.
Instead, one of the main price drivers over the past year or so is not geopolitical issues, but intense hedge fund speculation. With the stock market getting hit hard, due to a myriad of well-documented problems in real estate, the falling dollar, declining GDP growth and others, the massive hedge funds are pouring their money into areas like commodities - and oil is one of the biggest benefactors of the capital influx. Going forward, we’ll certainly see volatile dips along the way, but for now, expect this market to keep going up.
If you don’t want to invest in the sector directly, through future options contracts, you can always gain simple exposure through a couple of the most liquid ETFs - the largest one - U.S. Oil Fund ETF (AMEX: USO), or the Energy Select Sector SPDR (AMEX: XLE), which invests in some of the biggest firms in the oil and oil services sector.
Metals On The Move… And This One Is Dishing Better Returns Than Gold
When it comes to the metals market, most of the media and financial outlets are focusing on gold. Hardly surprising, since the metal just whizzed by $1,000 an ounce.
But while gold dominates the headlines, the truth is that most of the sector is enjoying incredible strength. Take silver, for example - a market not getting much press, but which is also setting new all-time highs over $21 an ounce. In fact, the silver market has actually given a better return on investment in a very short timeframe - as you can see on the chart.
Since the middle of December 2007 to today, silver has moved from $14 an ounce to its current level of $21 an ounce. That represents a dollar value $28,000 on just one futures contract.
But what’s so striking is that $3 of that move has occurred in just the last three weeks alone. That’s a $15,000 move. Keep an eye on the metals market, as there seems to be nothing holding it back from going higher.
The Ultimate Market Shift From Unforgiving Stocks To Lucrative Commodities
From talking with many of the colleagues I still have on the trading floors, most of the extreme moves in the various commodities have happened because of the trading activity from large, speculative commodity funds.
As the stock market has tumbled, these funds have moved away from equities and tossed their money at what they believe to be “undervalued” commodities instead. And while it’s hard to say whether these commodities are indeed undervalued, when the ball gets rolling, it’s hard to stop it until everyone decides to get out at the same time.
That’s all for now for this column. But if you’re interested in more analysis, I’ve covered two more commodities - one in the grains sector and another in the “soft” commodities area - in the April Xcelerated Profits Report issue, which will be sent to subscribers later this week. If you’re not one of them, click here to get more details on how to take your investing to a professional level by implementing the same strategies that the pros use every day to build wealth quickly and safely.
I’ll catch you here again in two weeks. Stay tuned for Jim’s “Sector Watch” column again next Monday.
Lee Lowell
Sphere: Related ContentWhy The Bear Stearns Buyout Was Necessary
January 1, 2001
| Smart Profits Report Current Issue | Recent Smart Profits Report Issues |
| Why The Bear Stearns Buyout Was Necessary… And How You Can Profit Amid And Financial Trash Talk Smart Profits Report Issue #507 By Karim Rahemtulla Investment Director, Smart Profits Report |
03/24/2008 - Why The Bear Stearns Buyout Was Necessary…
03/19/2008 - How To Profit Using The Risk-Reward Ratio 03/17/2008 - The World’s Highest Yields 03/13/2008 - Three Recession-Beating Tips |
| SPR Sector Watch | SPR Commodities Corner |
| Two Stocks to Watch March 24, 2008 By Jim Stanton Technical & Quantitative Analyst |
Oil Gold and Commodities March 17, 2008 By Lee Lowell Futures Options & Commodities Specialist |
| Sector Watch Archive | Commodities Corner Archive |
|
Smart Profits Glossary
January 1, 2001
Glossary of Option Terms
A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-X-Y-Z
Alligator Spread
American Option
AMEX
Asian Option
Asian Tails
Asset Class
At the Money
Backspread
Barrier Option
Bear
Bull
Bear Market
Bull Market
Basket
Basket Option
Bid and Ask Prices
Buy On Close
Buy On Opening
Buy Stop Order
Buy-Write
Breakout
Bear Spread
Bull Spread
Bear Call Spread
Bull Call Spread
Bear Put Spread
Bull Put Spread
Butterfly Spread
Black-Scholes Model
Beta
Call Premium
Commodity
Compound Option
Covered Call
Covered Put
Chameleon Option
Call Option
Condor Spread
Credit Spread
Caput Option
Contract
Contract Ratio
CBOE
DIA
DJIA
DJX
Down-and-In Option
Daily Range
Deep-In-the-Money
Delta
Delta Hedging
Derivative
Diversification
Double Witching Day
Exercise
Exercise Price
Exercise Limit
Expiration
Expiration Date
Expected Profit
European Option
Exchange-Traded Fund (ETF)
Exchange-Traded Option
Exit Strategy
Exotic Option
Extrinsic Value
Fundamental Analysis
Fundamentals
Futures
Futures Contract
Fungibles
FTSE 100
Gap
Greeks
Gamma
Game Theory
Greenshoe Option
Gut Spread
Historic Volatility
Hedge
Hedge Fund
Horizontal Spread
 |
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January 1, 2001
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Moreover, they also give a higher degree of safety than most "long" stock buys. In a nutshell, readers learn "how to make more money faster," just like the pros.
We've amassed one of the sharpest teams of investors and traders in the industry to help you achieve larger, quicker profits. On a regular basis you'll learn proven investment strategies from:
Investment Director Karim Rahemtulla is one of the country's foremost specialists in options trading and is an internationally renowned options trader who's been dubbed a "Market Maven" by CNBC. Over the past three years, his options strategies have cashed in winners more than 70% of the time. Karim is also the Investment Director of Mt. Vernon Research and an editor of the Xcelerated Profits Report, a monthly newsletter devoted to making money using the safest stock and option strategies to reap great returns.
Senior Analyst Marc Lichtenfeld is an editor for the Xcelerated Profits Report and Smart Profits Report and a specialist in biotechnology. Marc joined the team following a successful spell as Senior Columnist at TheStreet.com. A contrarian investor by nature, Marc loves to shoot holes in conventional thinking and take profits where nobody else is looking. He’s broken several major stories on biotech companies and his investment approach blends thorough fundamental research with the timing tools of technical analysis.
Futures & Commodities Specialist Lee Lowell is editor of The Delta Force Trader for Mt. Vernon Research and a regular contributor/editor to the Smart Profits Report and The Xcelerated Profits Report. One of America's leading options professionals, Lee spent six years in the options "trenches" as a market maker on the floor of the New York Mercantile Exchange (NYMEX) in New York City.
Technical Analyst Jim Stanton brings an incredible expertise to Mt. Vernon Research, as an advisory panelist, and regular contributor to the Smart Profits Report and the Xcelerated Profits Report. He has been involved in the financial markets since 1980 as a stock and commodity trader, broker, manager, CTA and consultant.
More Information on The Xcelerated Profits Report.
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I sold ½ of the stock per your recommendation, which returned my original investment.
I sold the remaining stock under my regular account on 4/13/2008 for $32.19 and a gain of over $4000.
On May 21, 2008, I sold remaining shares in my IRA account at $39.75 for a gain of over $5,000.
Thanks for your recommendation on this stock."
~R. M. Raga
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who you have been vastly outperforming. I did very well one of your recommended positions,
one of the few good positions I've had this year. Good job. Keep up the good work!
Cheers, Regards,
"
~Bud
