PORTFOLIO ANALYSIS AND INVESTMENT DECISION

Portfolio Analysis and Investment Decision

Portfolio Analysis and Investment Decision

This report aspires to condense our know-how throughout our participation in the international portfolio replication game, or StockTrak, throughout the dealing time span from 26th February 2008 to 8th April 2008.

Our buying into goal throughout the replication was mostly simulate a little, inexperienced shareholder in derivatives market, from completely new to the market and proceed with market report and sentiment to trial to perform some dealing strategies. Although we did not outperformed the market throughout the dealing time span, we accomplished our objective to change us from inexperience investors to more informative, structure traders throughout the 7 weeks.

Dow Jones action in 2008

Financial markets worldwide were scruffy by a borrowing crunch after seeing the economic adversities faced by numerous foremost economic organisations in the US and Europe. The Dow Jones Index had fallen from over 13000 at concluding last year to round 8000 in the end of the year.

Conditions in Greater China

Though China has been the smallest influenced by the compress in liquidity as its economic markets are yet to completely open, its supply markets were still susceptible to the shakeout in buying into sentiment. The Mainland supply markets turned out to be one of the lowest accomplishing globally, mostly because of their critical overvaluation before the correction and the doubts that expanded tradable portions might aggregate the trading pressure.

Sidney's Comment:

The ceramic part could be slash and restored by oil and crude, short will do.



Trading operations

Our dealing History

Trade Date Order Symbol Quantity Price Paid Comm Transaction

Amount

17/11/2008 Buy AXPKE.OPA 76 15 25 -1165

17/11/2008 Buy DJH9.CBT 2 83000 25 -166025

17/11/2008 Buy ECH9.CME 5 158112.5 25 -790587.5

20/11/2008 Sell AXPKE.OPA -50 10 25 475

20/11/2008 Sell DJH9.CBT -2 77700 25 155375

20/11/2008 Sell ECH9.CME -5 156125 25 780600

20/11/2008 Buy GMXP.OPA 200 100 25 -20025

20/11/2008 Buy C 3200 6.13 25 -19641

20/11/2008 Short ESZ8.CME -3 38962.5 25 116862.5

20/11/2008 Sell C -2000 5.62 25 11215

21/11/2008 Sell AXPKE.OPA -26 0 0 0

12/01/2008 Sell C -1200 7.38 25 8831

12/05/2008 Buy JYH9.CME 5 134787.5 25 -673962.5

12/09/2008 Sell GMXP.OPA -200 21 25 4175

Raine's Comment

Could any individual notify me what the emphasised lines' rationale is?

Comment from Alun:

1. Selling C on 20/11/2008. Stock was bought on the identical day at $6.13 as I anticipate a rebound of supply cost after preceding 2 day lets fall of 36%. However the market fallen directly when it opened and in first 30 mins it lost farther 10% already. I determined to deal 60% to slash loss. Eventually the market shut at $4.71 that day and $3.77 the smallest of the year on the other day. As I believe this is an oversell supply granted US Government will rescuer them so I stayed the 40% and confidently it would rebound subsequent and enclosed the lost.

2. 11/21 Selling AXPLE.OPA. This is to close the preceding position.

3. 11/17 Buying Euro Futures. At that time the Euro nations relentlessly reducing concern rate, and inflation rate is still residing at high level. Therefore I am anticipating Euro will stay powerful contrary ...