Short ATHR

We initiated a short position on ATHR at 32.35. The idea is to cover on weakness. We are looking at gains of 3-4% only and this is a short term trade.

As you can recall we had covered our positions recently at 30.15. Doing so has helped us preserve capital and given us an opportunity to go short at a higher price.

We added onto our position at 32.8. Or per share cost is now: 32.53

Quote Hanger

"Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited." - George Soros

"This is the biggest poker game on the planet, and the money flowing into your account isn’t appearing as if by magic. It’s coming from someone who is still learning how the markets work, and who most likely followed his or her gut and got suckered into taking the wrong side of the trade." - Marty 'Buzz' Schwartz

"Men are guided in their conduct above all by their beliefs and by the customs that are the consequence of those beliefs. These beliefs and customs regulate the smallest acts of our existence, and the most independent spirit cannot escape their influence. The tyranny exercised unconsciously on men's minds is the only real tyranny, because it cannot be fought against. Tiberius, Ghengis Khan, and Napoleon were assuredly redoubtable tyrants, but from the depth of their graves Moses, Buddha, Jesus, and Mahomet have exerted on the human soul a far profounder despotism. A conspiracy may overthrow a tyrant, but what can it avail against a firmly established belief." - Gustave Le Bon('The Crowd')

"Think big, think fast, think ahead. Ideas are nobody's monopoly" - Dhirubhai Ambani

Buy BANIND

We added onto our positions in BANIND on Tuesday at an average price of 192.5

Cover ATHR

We have covered ATHR on Monday at 30.12

Stock Analysis - Reader Request

We will analyze a few stocks that one of our readers wanted to run by us:

MIC Electronics: This is a recent IPO and as such doesn't have a price history for us to make any assessment.

ORB Corporation: This is a recent IPO and as such doesn't have a price history for us to make any assessment.

ILFS Investment: Conservative target of 165-180. We would advise a sell of 25% of holding on an incremental basis of 5 rupees upside.For instance, if you have 100 shares, sell 25 at abt 167, then another 25 at 172. Above 175, close all positions.However if you are looking at a time period of 6-8 months, then this stock can do well and hit 250.

Is this a time to buy?

As mentioned in our previous post 'Our Current View' , pasted below for reference,

We still maintain that we will see 15000+ before the Wave C begins. Some reasons for our bullishness:

We had a nice day in the DOW with it up abt 150 points. Following suit, we might have an average to good day in most markets tomorrow. Which brings us to 2 very important questions:

1. So has the recent corrective come to an end
   
2. Is it a good time to buy?

We feel the corrective has come to an end. In the end of April, we had posted a likely view of what we expect in the future. In this chart ignore the time dependency and look at only the price behaviour. The invalidating scenario is the break of 13200 in the Dow(leeway of 50-75 points) which will cause us to assume Wave C has begun.

The same holds true for Indian markets as well, with the invalidating scenario being break of 13800(leeway of 100 points). However the crucial difference lies in the individual stocks. While most US stocks are in distribution mode, the Indian stocks look set for a brief breakout. So in short - we can initiate short term buys on some select Indian stocks with a stop loss mentioned above on the sensex. Click here for some of our picks.

The Chart for today: