We were correct about our views on the Nikkei 225 over the short-term. We turned bearish on the potential upside of this index, and managed to sell our holdings for a profit of close to 30% in the morning.
Some of the reasons why we sold.
- Somehow or rather the warrant we are holding are of very short liquidity, not very advisable hanging on when it is very much in the overbought zone.
- Bid spread has been a bother to me
- Technical analysis on the price movements of the warrants suggested that it will not be wise to hold.
Eventually we may enter long into the Nikkei again. We had a target level of 16,500.00 and the fall in the next few days may just be a correction.
Will share with you guys later on the other major Asian bourses, particularly the Hang Seng Index. Its has been on serious overbought conditions as well, and we will take a look to see whether entering into PUT will still be profitable at this point in time when Hang Seng has already plummeted more than 300 points in afternoon trading. GOOD LUCK TRADERS!
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