Thursday 18 December 2014

Squeeze on Oil shorties - capturing the key reversal with Kepcorp call warrants

Yesterday , Wed 17 dec was a most  interesting reversal day ...

The Dow & oil had been plunging non-stop  since last friday 12 dec for 4  consecutive  days and we had been riding this plunge  with kepcorp put wrts( for more details of that ride , click here   .and here)  

for 2 past days,  crude oil had busted past my month-long target price of $57 ( click here) from $72  to a low of  $53.6 non-stop, seeming to break every support in sight  and many pundits were extremely bearish - about the Dow and crude oil .

Every analyst I knew had by now revised their oil target downwards to the 40s and at the same time revised their kepcorp target to $6.

Years of tracking analyst market calls told me it's time to change tack if every analyst is finally converted to singing the same tune. 

yesterday at 1100hrs I started to get short-term bullish signals on crude oil and kepcorp . 

I also concluded that the Dow will turn green  yesterday nite( a fomc nite ).
( see below bullish call to both student and freebee chat on kepcorp and dow & to buy some kepcorp call wrts ) 


What to buy if I am bullish - so I choose one nice cheap kepcorp wrt for the student and freebee chat to buy and bought they did to the max amount of warrants their credit limit could allow .
(see sample of buy statements  below ):





Last nite , the Dow rallied to close 288  points up and oil at one point rallied from $54.6 to $59 before dropping back .. ( see below) 

This morning Kepcorp opened gap up 8c from yesterday close of $8.22 ,  then rallied to as high as $8.48. The warrants followed suit and was up > 20% at its peak. 

One student was able to capture that brief ecstatic moment with a screenshot of  his trading  screen when the  kepcorp  warrant hit its peak at 10.1c up > 20%  from  7-8c when we entered yesterday.( see below) 

 will the kepcorp wrts turn green green , like up 50%-100%  in a few contra days like in previous trades( click here  )  ?  when would we sell ? not yet, but soon .

as usual, will showcase some contra statements here when they are ready , hot from the students' ovens...
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