How we nailed Infosys Earnings? (17 of 20 earnings right)

How we nailed Infosys Earnings? (17 of 20 earnings right)
How $0 investment made $5300 profit

We always participate before the event happens, not after the event.

Infosys(INFY) went up 19% on the NYSE today. How was our system set up to capture the movement?

Yesterday we had a meeting about the Technical analysis and noticed the Big Hedge Funds buying calls & selling puts.

We had 2 options to capture the gain :
1) Buy 1000 shares of INFY at $44 for $44000 to make profit of $8,200 (INFY went up $8.27) or loose how much ever it looses. We dont like this.

2) Buy Feb 13 - $47.5 calls for $0.55, total $550 for 10 contracts (1 US Contract=100 shares). We sold these for $4.80  making 900% profit overnight.

3) Sell Feb 13 - $40 puts for $0.55, collect total $550 for 10 contracts (1 US Contract=100 shares). We bought these back for 5 cents  making 1000% profit overnight.

Add 2 & 3.. For $0 investment we made $5300 profit.

See the picture of these contracts in one of our accounts.

Infosys Jan 2013 options analysis

Infosys Jan 2013 options analysis - This is a free trade, we give out every quarter

Let us look at where smart money is thinking infosys will end up before third Friday of Jan 2013.

There are 8360 contracts sold at $45 - This suggests INFY will not go more than $45.

There are 2900 puts at $57.5 which are worth ($14.8x2900x100=$4.2million) some one who is confident this will go down further is holding the position

There are 5400 $40 contracts at $0.7  . If this Hedge fund has to make a profit on its investment, Infosys has to close below $39 on Jan Expiry. This is possible and we will go with this option, but wait for last minute buyers on Thu..

Final target for Infosys in 2013 is $28-29

Gold at cross roads again

Gold at cross roads again -

As mentioned earlier Gold is at cross roads and on the verge of breaking down from its peak of $1943/oz on AUG 2011.

Gold is in a circle similar to 2009, now it is different. it is on the path to $1400/oz pretty soon.
There are rumors no new $$$ is printed..

India :
As Gold kept falling (-20% from AUG 2011 $1943/oz) Genius Indian government kept depreciating the Rupee to Rs55/$ and keep Gold rates steadily increasing at Rs 32,000/10gms the highest so far. Reason, in India if Gold rate comes down, real estate will follow and banks will become pauper (Bankrupt)..

We think Rupee can touch Rs60/US$ by mid 2013.. and the US$ keeps getting stronger.
No much movement seen in Gold. so no ideas on Gold & Silver.

Gold is at cross-roads like in OCT 2008

Gold is the similar circle that was in OCT 2008. Will it break up or end down.

We don't think it will break down. It will get to $2000/oz in a year. (only in US $, no estimates in Indian Rupee)

In 2008 crisis US had to print another $5Trillion and has now ended in $16Trillion debt.
Today it is no different, we need $4 Trillion more in the next 4 years.. Gold has been down 20% since Aug 2011 and it is expected a big move.  probably to upside. Wait for confirmation in the next 2-3 weeks. It has to produce a weekly bar in the weekly chart below.

Infosys's Capitalism introduced into a Socialist country like India. Is it working?

Infosys's Capitalism introduced into a Socialist country like India. Is it working?

Picture says 1000 words. We pulled up chart of Infosys and Wipro from Feb 2000 till today.

Infosys was at $92 on Feb 2000 and after all split adjusted and dividends, it is worth $44 today, what this means if would have invested $92 in the great NRN's Capitalism Vision of Infosys, your money is worth only $44 today. It will take another 30-40 years for Infosys to get back to $92, if at all Infosys exists in its present form. Charts says it all.. where Infosys is heading towards.. Collapse like Kingfisher Airlines

Wipro : If would have invested $6 in Wipro in Feb 2000, it is worth $8.2 now after all splits and dividends. Does it makes sense in Premji's Socialism.. Yes your money is inflation adjusted for 2-3% and will grow sequentially. Believe in Socialism now. 

AAPL : Updates 08/29/12

APPL continues strong towards our target of $850 by  JAN 2013. See P&F charts

This week we saw $$$ flow from AAPL to GOOGLE, this is temporary and will change next week.

AAPL is basing on the 60 minutes for a breakout to $740 next month.  See Weekly charts. AAPL is one of the cheapest stock in S&P 500 and it will continue to grow next 3 years for a price target of $1500

On the IRA accounts we are holding till $800, sell and buy lower after a 10% correction (which may not come as per weekly charts in 2012)

Weekly trading accounts are managed as per the 60 minutes charts.. sell begining of  week and buy on Wed evening is working  out well.

FaceBook (FB) - Our suggestion on IPO? where we are now?

We suggested not to buy FaceBook IPO at $44 on the opening day. Our target was $14. But some of you bought it. Also I got couple of hate emails and on my Facebook page regarding our suggestion.

Let us do a reality check today :- FaceBook (FB) is at $20.90 down from $44.00. We think it will go to $14 as suggested on the IPO day. It can comeback to $20 and then again $4-$8 range in the next 12 months.. yes $4 you heard it. Remember the lockup period and additional 250 million insider selling on Aug 12 2012.

Your comments are welcome.. we value your opinion.
Venkatesh K