The Trading Floor - May 2018

Discussion in 'The Trading Floor' started by Amator, Apr 30, 2018.


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  1. nottibird

    nottibird Moderator

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    No, bro.
    SJ server is sick today. Whole morn till now I have been experiencing intermittent failure.
    SJ has alot alot more users than our forum. So its quite understandable if their servers cannot take the load from time to time
    unless SJ upgrade and upside their servers but you see, its a free forum...so there is a limit to how much SJ is willing to spend
    on hardware. Having difficulty logging in does happen from time to time. But today, the problem is the worst I have ever experienced.
    So you are also reading there as a regular lizard, I suppose.
     
  2. boyboy

    boyboy Well-Known Member

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    NB,
    Did you post some hot and spicy stuff at your new playground resulting it kena locked... Not accessible..
     
    Last edited: May 28, 2018 at 11:32 AM
  3. nottibird

    nottibird Moderator

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    Dai Lole,

    Once you have news of the outcome of Bombay High Court ruling in case between India SGX and Spore SGX, please update us. Thank you.
     
  4. nottibird

    nottibird Moderator

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    Trump-Kim Summit back on the menu.
    Dow Futures at +93.
     
  5. nottibird

    nottibird Moderator

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  6. nottibird

    nottibird Moderator

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    SEX...

    The lawsuit between India Stock Exchange and Singapore Stock Exchange looks quite bad. From the comments given by
    fund managers in the article I posted, a ruling against the Singapore Stock Exchange will mean that fund managers will have
    to find other means to hedge against their exposure in the Indian market and that may mean some fund managers may pullout
    altogether from the Singapore market. Unless the Singapore Stock Exchange can come up with a solution to serve the hedging
    needs of these fund managers.

    As such, a ruling against the Singapore Stock Exchange will likely see a considerable knee-jerk reaction to the downside. Whereas
    a ruling in favour of the Singapore Stock Exchange will merely mean the status quo is preserved and that means SGX' s earnings
    will remain where they now are, not increase. What this means is that losing this lawsuit will see considerable downside in the stock
    price but winning this suit will not necessarily see a rally in the stock price. Hence, the risk:reward ratio is very unfavourable for those
    who are LONG in SEX.

    The High Court of Bombay is now asked to issue an injunction to protect the interest of their own Stock Exchange of India. A denial
    of this injunction will mean the Indian Stock Exchange will lose revenue for the india-related derivative contracts offered by the Singapore
    Stock Exchange. Imagine our Singapore Stock Exchange making a similar application to our Singapore High Court to stop the Stock
    Exchange of another country from offering products which will divert revenue away from our Singapore Stock Exchange to that foreign
    stock exchange. What is the likely outcome of such an application?

    So if you are LONG, get out at best. Meantime, dont open any new LONG positions in SEX.
    And get ready to SHORT if the High Court of Bomaby rules in favour of the Stock Exchange of India.
     
    sotong11 likes this.
  7. nottibird

    nottibird Moderator

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    Investors unsettled as Singapore and India fight over futures
    -SGX, NSE clash over derivatives contracts threatens to end popular way of hedging Indian shares

    SAT, MAY 26, 2018 - 5:50 AM

    WHAT started as a business disagreement between two Asian exchanges has become a source of growing concern for international
    investors.

    A fight between Singapore Exchange Ltd and National Stock Exchange of India Ltd over derivatives contracts is threatening to end a
    popular way of hedging Indian shares. The battle, which went to court in Mumbai this week, has left traders scrambling to find new ways
    to manage their exposure to the US$2.3 trillion market, one of Asia' s biggest.

    The dispute broke into the open in February after NSE said it was axing licensing agreements with overseas bourses. India is trying to
    discourage offshore trading and promote a tax-free trading zone in Prime Minister Narendra Modi' s home state, part of a broader effort
    by Asian nations to keep control of capital while further integrating into the global financial system. That' s not a combination that appeals
    to money managers.

    " The moves do not help and it sends a wrong signal to the investing community," said Salman Ahmed, London-based chief investment
    strategist at Lombard Odier Investment Managers. " You want to open your capital account incrementally, and for foreigners to invest in
    your very young population. This is a very bad signal to give."

    NSE and SGX first clashed in January, when the Indian bourse asked its counterpart to delay plans to introduce single-stock futures that
    would track some of the subcontinent' s largest companies. SGX ignored the request, and a week later India' s three national exchanges
    said they would cancel their offshore pacts, which meant that Singapore could no longer offer Nifty 50 Index futures.

    " The battle is more about control and volumes," said Vik Mehrotra, chief executive officer of Venus Capital Management Inc in Boston,
    who has been investing in India since 1994. " This is a self-preservation move by NSE. This is an unnecessary fight."

    Officials from NSE and SGX declined to comment.

    NSE is suing to prevent SGX from starting contracts that would replace the Nifty 50 derivatives. Singapore' s exchange has readied the
    SGX India Futures for launch on June 4, and has said the contracts will use publicly available data. NSE argued that they are " unlicensed
    products" and " identical" to the Nifty-branded futures.

    The Indian exchange had sought the urgent hearing without giving notice to SGX, a sign of how much the 18-year partnership between
    the companies has deteriorated.

    The next hearing in the case is due on Saturday in the meantime the Bombay High Court has issued an injunction against SGX to
    prevent it from launching the new products.

    SGX' s shares fell 2.1 per cent on Tuesday, when the company revealed the lawsuit in Mumbai, its biggest drop since April 4. The stock
    closed on Friday down 3.4 per cent since Monday' s open, its worst week since mid-February, according to data compiled by Bloomberg.

    If the NSE wins, and assuming SGX abides by a ruling from India, investors will be left without an easy offshore way to hedge Indian
    stocks. Some global asset managers are saying that they may pull out of the country, said Eugenie Shen, managing director and head
    of the asset management group at the Asia Securities Industry & Financial Markets Association. Others may lower their exposure, she said.

    " Many still prefer to access India through offshore products or offshore means because the general view is that it is difficult and costly for
    foreigners to invest onshore," Ms Shen said.

    India' s markets regulator on Thursday allowed foreign investors to execute trades via brokers without registering on stock exchanges
    in the tax-free zone in Mr Modi' s home state of Gujarat, known as Gift City.

    The question investors are asking is what they will do if Singapore abandons Indian futures, which currently have about US$15 billion
    in open interest, according to Sean Cunningham, head of capital markets and fixed income for iShares in Asia-Pacific at BlackRock Inc.

    " Investors are looking to alternatives to be able to get the exposure they are going to have to get," Mr Cunningham said. " There is still
    a lot of uncertainty out there what the end result will be."

    SGX' s lawyers in the Mumbai court signalled on Wednesday that they would be willing to enter arbitration to resolve the issue, though it
    is unclear what the contract between the exchanges, first signed in 2000 and amended last year, sets out for any court-mandated dispute
    resolution.

    In the meantime, market participants should try to trade onshore or use synthetic products to keep their hedges, said Nikhil Bhatnagar,
    head of Asia sales at Auerbach Grayson & Co in New York.

    " Investors will suffer in this drama," said Anil Ahuja, CEO at Singapore-based IPEplus Advisors. BLOOMBERG
     
  8. nottibird

    nottibird Moderator

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    Ya. MAY is a weak month so can only make from SHORTs.
    This month... the 1st 3 trades were losing trades...all LONGs in Suntec which I cut at 1.95.
    Now 1.79 : 1.80.

    And the rest of my trades are all SHORT trades.
    If not for these SHORT trades, my P & L this month will be the losses sustained from Suntec.
    But becoz I had these SHORT trades, Month To Date after erasing Suntec losses is 13.8k.
    Not bad lah. aa1a (11).gif
     
  9. plutus2

    plutus2 Well-Known Member

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    good morning
    and
    congrats Bro NB.. continue to harvest
     
  10. nottibird

    nottibird Moderator

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    Kamsiah bro. [​IMG]
     
  11. nottibird

    nottibird Moderator

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  12. koaladreaming

    koaladreaming Well-Known Member

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    Congrats Bro Nottibird
     
  13. nottibird

    nottibird Moderator

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    Yayyy !!! CMT Blanjah me !!!

    [​IMG]
     
  14. Amator

    Amator Well-Known Member

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    (May 24): The Bombay High Court extended an injunction against Singapore Exchange (SGX) as it deferred hearing a dispute over plans for new offshore Indian derivatives contracts.

    National Stock Exchange of India obtained an interim order on May 21 that restrains SGX from launching the products in June. The stay will remain until at least the next hearing in the case between the bourses, set for May 26, the NSE said in a statement late Wednesday. SGX officials declined to comment.

    NSE went to court to stop its counterpart from starting contracts that would replace its popular Nifty 50 Index derivatives. The Nifty futures in Singapore will end in the coming weeks after Indian bourses in February cancelled their licensing and data deals with overseas markets, a decision that drew consternation from international investors and left SGX and others scrambling to find alternatives. The contracts have become a favoured offshore product for hedging Indian holdings.

    Singapore Exchange’s solution to the dispute was to ready the SGX India Futures for launch on June 4. The new contracts will be based on publicly available prices as well as market supply and demand, SGX has said, but NSE argued in court documents that they are “unlicensed products” and “identical” to the Nifty-branded futures. The Indian exchange had sought an urgent hearing without giving notice to SGX, according to the court filing.

    SGX’s counsel told the court on Wednesday that they were ready to appear before a single arbitrator for relief, which ought to be decided before June 4.

    “It really should not come down to legal disputes,” Gary Dugan, chief investment officer at Dubai-based family office Namara Wealth Advisors, said by email. “If Indian asset markets want their rightful position in global markets they must accept the international competition in the derivatives markets.”

    MSCI Chief Executive Officer Henry Fernandez said his firm is “concerned, quite a lot” about the fight. The New York-based index compiler has “no problems” with efforts to develop onshore markets, but that shouldn’t mean killing offshore trading, Fernandez said in an interview with Bloomberg Television.

    There were 1.65 million Nifty 50 Index futures contracts traded on SGX in April, according to the exchange’s data. While that was down 14 percent from a month earlier, it was still the third-most traded contract on Singapore’s bourse, behind the FTSE China A50 and MSCI Taiwan offerings.

    If SGX abides by the ruling, it would mean there’d be no viable offshore options to hedge equities held in India.

    “This is not a good time for international investors to be worrying about whether their hedge strategies are valid or can be rolled,” Dugan said. “The last few months have been challenging for Indian asset markets and international investor confidence has been tested.”
     
  15. nottibird

    nottibird Moderator

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    Yayyy Sis Sotong. aa1(3).gif
     
  16. sotong11

    sotong11 Well-Known Member

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    Good morning...

    Cogrates bro NB


     
  17. nottibird

    nottibird Moderator

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    upload_2018-5-24_9-29-33.png


    Heheh... now he is starting to believe SingTel wont break below long term support at 3.00 and crash which was what he said last time
    but SingTel held up at 3.30 and rallied to 3.58 instead and his SHORTs were all underwater. Now that SingTel is pulling back to 3.33 : 3.34,
    he is taking the opportunity to close his SHORTs at breakeven level.
     
  18. nottibird

    nottibird Moderator

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    On DBS...


    The last major correction was from $29.71 to $26.35.
    That was a fall of $3.36 or 11.3%.
    Her Last High was $31.28.
    A similar fall of 11.3% will take us to $27.74.
    She closed at $28.73 today.
    In order for her to fall to $27.74, she will have to fall another 99 cts... which for a counter like DBS is entirely possible.
    For those of us waiting to LONG, we will be delighted if she can fall to $27.74.
    And if she wants to go even lower, then we all Lagi more $ONG.
    Whilst we wait on and hope to see her fall to $27.74 thereabout, at the same time, we must also stay vigilant and entertain
    the possibility that she may also not fall by as much as we would like to see. Her Last Low was $28.51. She could U-Turn
    on reaching $28.51. Or even before reaching that price. We dont know. So we must keep all options open and be ready to
    buy in instalments even if we dont see our preferred entry price.

    On a brighter note, take comfort that as long as we can hold, whatever lowest price we manage to get tomorrow or on Friday,
    we will see profits going forward. Let me explain it with an illustration this way...

    Last High was $31.28.
    Will we see that again?
    My answer is OFCOZ !!!
    Becoz DBS is an uptrend stock. She has already announced that dividend in the current fiscal year will be $1.20 and we all know
    the Fed will be raising interest rate another 2 if not 3 times in 2018. There was already one hike in Mar 2018. So it is a done deal
    that DBS will, after this correction ends, resume her uptrend to revisit her Last High at $31.28 and surpass it to head towards $32.00
    and higher.

    So let' s say we are able to BUY & HOLD say 10,000 shares at an average price of $28.00.
    Margin required to make this trade is 28k.
    When DBS is back at $31.28, that' s $3.28 of capital gains per share or $32,800 before com and interest charges if you have 10 lots.
    How long will it take? Maybe 1 month ? Maybe 2 ? Even if 3 months so what ?. To make $32.8k within 3 months... go where and find !!!
    And just think about it... a capital outlay of $28k for margin..... can make $32.8k before com and interest. What is your rate of return
    on capital ? Phenomenal !!!
    Why 3 months max should be able to see her reach her Last High at $31.28?
    Becoz DBS pays dividends twice a year in May and in August.
    The next XD is in mid-Aug.
    We are coming to the end of May.
    We have June and July for her to run.
    At worst by Aug which is about 3 months from now and with dividends as the catalyst for her to run, surely she would have reached
    $31.28 by then? Teok Boh.

    So ......go make use of the window period between now and then to raise funds to make this sure-make money trade. If you can do 20
    lots...30 lots... or more, this rare opportunity to do a sure-make-money trade is something you dont want to miss. 30 lots... you can make
    $98,400 and change your car or renovate your home. Thought I tell you all this now to give you all a headstart plus to give you all some
    extra time to go CHONG the money out to seize this upcoming golden opportunity to HUAT.

    We missed the last one --- when DBS CHEONG from $26.35 to $29.71...that' s $3.36... and after that she CHEONG some more from
    $29.71 to $31.28... that' s another $1.57. Or a total of $4.93.

    So let' s not miss her next ride back to her Last High at $31.28 when this current correction ends.
     
    sotong11 likes this.
  19. plutus2

    plutus2 Well-Known Member

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    Good morning
     
  20. nottibird

    nottibird Moderator

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