We have been short banks.
UK government is investing $10B in RBS and $3B in BCS. We do not know how the stock prices will react. Should the prices begin to rally, we recommend covering in London. If the prices fall precipitously, again the right action will be buy to cover. If the prices open unchanged, we recommend buying to cover half and lose stop on the rest.
Similar recommendations apply to UBS and IBN. We have been using IBN as a proxy for our recommendation to short Indian and Chinese Banks. We recommend following the aforementioned advice related to these positions and buying to cover in their home countries at the open
Closing prices: IBN $13.85, RBS $1.45, BCS $15.20 and UBS $15.30 in New York
Same advice applies to other European banks and insurance companies we have been short. We have been using AXA, XL and AZ as proxies. We hit a home run with XL.
Closing prices: AXA $22.90 , AZ $9.71, XL $ 5.41 in New York
THE ARORA REPORT, Ltd.
HOME OF THE UNIQUE ZYX CHANGE METHOD
DEDICATED SOLELY TO PROFIT FROM CHANGE BY TRADING AND INVESTING
VERIFIABLE PERFORMANCE RECORD
Every closed trade since 2007, without exception, is included in the performance results.
Number of winning positions: 162
Number of losing positions: 10
Average annualized % return per position: 296.77%
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