Even though I was confident of nifty breaking below 5600, my suggestion was to not go and sell in this down tick but to use it as an opportunity to go long. I had suggested to utilise the panic among naive sellers to go long in private banks. It is a known fact that if nifty has to crack, private banks/financials will be a major contributor due to it’s heavy weight on the index and being one of the only ones (except defensives) where people are sitting on good profits. There is no problem in putting money into companies at lower valuations that are growing at 25-35% year on year. People who used the dips to go long are sitting in decent profits and people who missed out in hopes to get even lower levels got greedy and made nothing. If companies growing at 25-35% and always giving above expectations results will not rally post a huge correction then what will?

The rally really caught us all in surprise as it started all of a sudden and gained momentum, but this is what always happens and can happen from any level. Instead of 5477 as a low on nifty, it could also have been 5200, but can you catch the bottom? No, you cannot catch the bottom and thus you should not attempt to also. Keep buying as you see the fall coming off and hold patiently for a good opportune time to liquidate your holdings in profits. Anyway, let’s try and understand what might happen in the future.

Where are things headed now?

Honestly speaking, a lot depends on the RBI policy. If market is factoring in a 25bps cut, then market may get what they want and since this rally has already factored that kind of cut, we may get to see a technical correction in the markets. If markets have rallied on expectations of 50bps cut, then I guess there may be a room for a bigger disappointment and correction may widen. I heard some people on TV talking about 50bps rate cuts being expected, which I really doubt will happen.

Just last monetary policy, RBI Guv was talking about limited scope for rate cuts and suddenly in next policy, a cut of 50 bps? I am not saying that there is a zero percent chance, but chances are limited that there will be such a deep cut. The last time RBI cut 50bps was last year in April and because of that RBI didn’t cut for the whole year and even said so that he won’t. If RBI cuts 50bps and says that he won’t cut now, even that will not go down well with the market.

I don’t think even gold or crude fall can bring about a 50bps cut because RBI Guv’s thinking is not on the same lines as a stock market trader that gold has fallen 20% and crude has fallen 10% for a few days, so immediately a big cut is deserved. RBI would question that what if commodities rally again by next policy? Why not cut only 25bps and wait and watch how commodities behave till next policy to decide on further cuts? Honestly, now with Crude already inched up to 103.50$ from 97$ and Gold inching to 1466$ from 1320$, I think RBI would really want to wait before getting aggressive with cuts. RBI would find more comfort in cutting 25bps at once than 50bps at once and feel disappointed by next policy, they are just so conservative. Even markets have conveniently ignored the recent upside in commodities and traders continue to chase the momentum as they feel the rally is here to continue.

Most banks have shot up like 20% from the lows, even bank nifty is up 18% or so from the recent lows and all of this happened in last 10 trading sessions with no consolidation or correction. We have seen 10 days of continuous shooting in stock prices of banks and some other rate sensitives, I think if not a deeper correction, atleast a technical correction of 3-5% is definitely warranted. If I look at daily charts of all of these bank stocks and the bank index, they are highly overbought and a correction is standing at the doorstep ringing the bell.

For Investors or Traders who are looking to book profits in short term should really think about booking out now before you see a correction and book profits in panic at lower levels. For Investors who have a longer term horizon, they can remain patient and continue to hold. By March 2014, I am looking at no less than 20% more kind of returns in private banks from current levels. However, for fresh investments, wait for some kind of 5-10% dip and only then go and buy. Don’t hurry up and buy into a rally only to be disappointed with a correction. Play safe and nice and mint money by investing your money in private sector banks!!

Related posts:

1. Start Accumulating Private Banking Stocks
2. Invest In Private Banking Space
3. Positive on Banks

I was having a look over charts of TCS and the movements of the stock is not related to nifty that much. You will notice that TCS and even HCL Tech is playing it’s own game most of the time. But what is certain, is that they have their up and down cycles and it is not a one way up move. The easiest way to form an entry into any a stock like TCS would be to look at 52 week highs and wait for something like 10-15% dip and enter the stock and patiently hold for next up move. You are not going to make a lot of money if you enter these stocks at the highs. Don’t make a mistake of waiting for a correction in Nifty to enter into the IT sector stocks like TCS/HCL Tech because it will give you a false impression that the stock is strong and is unwilling to correct despite nifty seeing a decent crack. Enter only and only if you see the stock itself falling by over 10% and be patient.

Now let us look at some of the individual names:

Infosys – Exactly two years back I had written a post about how Infosys is no longer a good investment stock and surprisingly even today, Infosys is still the same. It is a disastrous IT stock and a dead investment for investors. Any investor who is holding Infosys for last two years is still sitting in a loss. I honestly don’t understand why there is still optimism for this stock. The company has not delivered for many quarters now and the company’s guidance has consistently remained weak. This year Infosys failed to even meet up it’s already weak guidance and their next year guidance is barely 6% now. If the management themselves don’t believe that their company is on a growth trajectory, why should an investor say otherwise and invest into the stock? Do NOT invest into Infosys and if by any means you are holding Infosys for a long time now, simply get out on any decent uptick.

Wipro – Wipro has been dead for a much longer time than Infosys, the disappointments just don’t end only. Several quarters have gone by and the company just continues to disappoint every time. The stock performance reflects the kind of disappointment and an investor who is holding Wipro for 3 years now would still be in losses. I just don’t see Wipro as a good investment stock, and I would advice investors to stay away from Wipro. If you are still holding Wipro for a long time, then kindly look for an opportunity and say goodbye to stocks like Wipro.

HCL Tech – For two years HCL Technologies has been my top pick in the IT sector and even today it remains so. The company is giving strong results each and every quarter and beating the analysts estimates by a mile. Due to strong earnings growth trajectory, the stock has also outperformed in the recent past and given great returns to investors. I believe that HCL Technologies is a great stock to buy and it will continue to give good returns to the investors, something that stocks like Wipro and Infosys have failed to do.

TCS – TCS is also a very good company and continues to deliver returns to it’s investors. TCS results have always been either above estimates or in line with estimates. I haven’t seen disappointments from TCS and that is pretty much why the stock has massively outperformed it’s peers like Infosys. TCS keeps making fresh all time highs and rewards its investors. There are no concerns in TCS apart from valuations. Such high valuations don’t make TCS the most attractive purchase but I can tell you that you no matter what, if TCS continues to deliver on results front, the stock will continue to move higher and higher. An investor will make money here, less money, but safely their money will continue to grow. Look for 10-15% kind of dip from the highs and only then enter into the stock, don’t enter at fresh highs and get stuck on a correction.

Mahindra Satyam – I have not tracked this stock very much, but the last few quarters I saw, they did well on the earnings front. The stock price has also reflected the kind of performance of the company and given huge returns to their investors. This stock is a bit volatile and show large movements on either sides. I think on good dips, Satyam is a great buy from long term view. An investor here has a huge comfort on valuations front and can expect good re rating on the stock in future, provided the company continues to deliver on earnings front.

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3. Have IT Companies Bottomed Out?

Best Asset Quality: Yes Bank has the best asset quality in the entire banking space. Yes Bank literally has close to nil NPAs. Their provision coverage ratio stands at 80% which suggests that all the bad loans are absorbed well with proper provisions. They have been maintaining this kind of asset quality for years now and they have promised to continue doing it in future.

CASA Growth: Yes Bank managed to behave like a corporate wholesale funded bank till a few years back and give us 50%+ kind of earnings growth but now with economy slowing and getting cautious on lending side to maintain minimum risks and good asset quality, they have aggressively stepped up on branch expansion to get low cost deposits from the retail side to maintain high profitability. Savings rate deregulation has proved to be a game changer for a bank like Yes Bank. They are offering 7% on saving deposits which happens to be the highest in the industry and with rapid branch expansion and tons of advertising, they are grabbing savings deposits like anything. They are expanding their CASA ratio at almost 0.8-1% every quarter and will soon become at par in the league of CASA with most other banks. High CASA tells us that the bank is in a good position to absorb shocks in a dead economy than a bank that has a a lot of high cost borrowings and high leverage. In the next 3 years, we can hope to see 30% kind of CASA ratio for Yes Bank which can drive NIMs to almost 3.5%.

Cost of Funds: With rapid CASA accretion and short term borrowing rates coming under control has helped Yes Bank in lowering it’s cost of funds much faster than the yields on funds. It is because of this that Yes Bank has been improving it’s net interest margins consistently in the last few quarters. Improving NIMs allow Yes Bank to be cautious on lending side and maintain good asset quality while having nothing to compromise as far as profitability is concerned.

Fee Income: Yes Bank has been showing good non interest income as well. In future, I am expecting retail fee income and transaction income to substantially go higher as the bank continues to add almost 40,000 customers every quarter. New customers not only help in improving savings deposits but also aiding in improving the retail fee income for the bank. Consistent improvement in fee income will help the bank in maintaining strong earnings momentum going forward.

Healthy Ratios: Yes Bank has a very healthy ROE of 25% and ROA of 1.6%. CAR which tells you the potential to absorb risks in the system has inched up to a very high level of 18.5%. Tier 1 ratio of 9.5% has also held up well which suggests, we can expect a good earning next year without having to raise funds. A healthy ROE of 25% tells us that Yes Bank can dilute upto 15% equity to raise capital and yet maintain ROEs in excess of 20% with no problems.

Earnings Growth: Even in a slowing economy, Yes Bank is managing a growth rate of 30-35%. Yes Bank has also guided for a 30% PAT growth going forward in FY14. This kind of growth rate also makes Yes Bank one of the fastest growing Banks in the entire industry, or better said, fastest consistently growing bank in the industry. In just 8 years, Yes Bank is already a fourth largest private bank.

Key Feature: Yes Bank used an aggressive lending approach to boost profitability upto 2011 before getting cautious on the lending side due to screwy economy. Now even with caution on the advances front, Yes Bank still manages to deliver a strong profit growth. They simply tweaked the business model and started working aggressively on building savings deposits and improving CASA. CASA is helping in bringing their cost of funds down and also helping them build customers and boost non interest income. This helps them in maintaining 30%+ PAT growth with barely 20% loan growth. By the time saving deposits accretion slow down, the economic conditions might improve and they can start lending aggressively again. As long as Yes Bank continues to manage their risks properly, I don’t see any problem in growth potential of Yes Bank.

Earnings & Valuations: I expect Yes Bank to deliver a strong set of results in Q4 FY13 with 30%+ PAT growth. In FY14 also expectations stand at close to 30% kind of PAT growth. In terms of EPS, I am expecting an EPS of 36 for FY13 and 46 for FY14. This tells us that at the current market price of 424, Yes Bank is trading at less than 12 times FY13 earnings and slightly above 9 times FY14 earnings. In terms of book value, I am expecting 163 BV for FY13 and 200 BV for FY14. This brings us to 2.6 times FY13 book and barely 2.12 times FY14 book. If Yes Bank manages to raise funds this year, then the book value can shoot to 240 for FY14 and that brings us to barely 1.75 times.

Target Price: In a good market condition, we see Yes Bank easily inching higher to almost 3 times book. So I would look for a target of 600 and no less than that for the next 12 months. For an investor, there is a chance to make almost 50% gains in the next 12 months.  Pick up Yes Bank on dips or at current market price and patiently hold it till the next time markets do well again.

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2. Yes Bank Q3 FY12 Results
3. Yes Bank vs IndusInd Bank

Earnings – We already knew in the past that earnings will be disappointing for a few more quarters. Anyway markets still went higher despite knowing that earnings will not improve anytime soon. If anybody tells you that people bought around Q2 FY13 expecting earnings will be great and they realised by Q3 FY13 that earnings will be bad and started selling is a liar. We are not fools to believe that someone thought that suddenly earnings will skyrocket and in 3-4 months they understood that earnings won’t skyrocket and suddenly India is a selling market. For me, what I see is earnings is just disallowing markets to go very high as without much earnings growth, it is difficult for higher valuations to sustain but I don’t see earnings being a sole reason for a crash.

RBI Policy – This is a new overhang on markets. Honestly, I don’t understand RBI governor. One one hand he is easing and on other hand he is saying that there is limited room for further easing. What is the point of cutting rates and saying he won’t cut anymore? Core inflation is down to 3.8%, if this isn’t a great time to cut more rates, then when is? You cannot control Food and Fuel inflation with monetary policy. RBI’s constant change of goal posts as core inflation or headline inflation is confusing people. Now even if we say that we had expected no better from our beloved RBI Governor, it is still a very discomforting factor that RBI refuses to cut further even after weak economic data continues to pour in.

DIIs selling and crappy Divestments – FIIs may have invested over 1 lakh crores since July 2012 but smart DIIs have sold over 70,000 crores also. DII selling so much is a disappointment. LIC has been a net seller in this market since last several months as they have to keep building cash levels for buying horrible government divestments which nobody else would even look at. As markets were rallying, that was a good time to sell and build cash levels than when markets fall. This selling pressure is one of the reasons why markets may have faced a tough time at higher levels.

Weak Economy – GDP data at 4.5% was no less than a disaster and was a huge negative surprise for markets. Another shock came from Current Account Deficit coming at unexpected 6.7%. Now a weak GDP and high CAD was factored but numbers that came were still on the extreme side, which is still a discomforting factor for markets. Why would a markets rally hard when GDP growth has crashed to all time lows?

Political Uncertainty - Thanks to our great politicians, the last thing we wanted as a gift from them was an uncertain political environment. Whoever was buying in the last 6-8 months would have not at all expected that suddenly in the start of 2013, the political environment will become so uncertain. DMK pulled out and SP eager to have early polls, BJP gearing up for next elections already and most of them are talking about early elections, preferably by year end. Now markets are not worried about elections, but the worrying factor is that if there is early elections going to be held, then reforms will stop and government will push for populist measures and the promise of maintaining fiscal deficit will also go down the drain. Which government will increase diesel rates 2 months before elections? So yet another dramatic overhang on markets and I personally feel that this is the biggest reason why the underperformance of our markets has accelerated so much lately. People have started to expect that reforms and policy actions are going to come to an end which was the main reason as to why the rally ever began, thus clinging to new highs is unlikely till uncertainty prevails.

The last time we spoke, we were looking at 5600 holding out over a longer period of time. I no longer hold that view considering how disappointing markets have behaved over the last 1.5 months. Global markets continue to move higher and yet to even begin a technical correction phase. Nifty is barely holding in the zone of 5600-5700 and has failed to cross even 5800 now, thus it is looking increasingly possible that nifty is going to break down and make a new low. There is possibility of more downside for markets and if markets begin a fresh correction now, we are bound to see lower levels.

A new low below 5600 is very much possible and we may head down to 5400-5500 levels on nifty. I am looking at a base of 5400 – 5500 for nifty and a freak low below 5400 is not ruled out, but those levels have a low chances of sustaining. In the past we have seen important levels being broken on the downside but they never sustained. We saw how 4500 had come on nifty but within matter of days we jumped.

Don’t panic in a fall and don’t keep hopes of trying to catch the bottom. Continue buying good companies as the market falls. Watch for panic below 5600 and use that as an opportunity to buy something. I continue to believe that Private Banks are going to be the best investment on dips if you have a 1-2 year horizon. They continue to deliver strong earnings momentum and thus whenever markets recover, they’ll be the first ones to rally. Stay away from midcaps and smallcaps as they have no future right now.

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The earnings may not have been great but this market never went up expecting earnings to skyrocket. Even with all of this, this market today is trading at 14 times one year forward earnings and right now is not a time when you will see FY14 downgrades coming in as we still have to deal with the fourth quarter of FY13.

Why would we go all the way back to where we were six months back? What changed in last six months and what has changed now that the markets will go back? Markets did not go up just for fun but because government delivered on it’s promises on the policy front and they’re still doing what the markets want them to do and thus rule out the old levels from your expectations. Correction is one thing and a crash is another. Markets crash when something really negative hits the market and I don’t see any such negative news floating in the market.

If the second half earnings of Q3 FY13 was a disappointment, then that is not enough to take the markets back to same levels as before. This market never went up on earnings expectations, because there were never any great expectations from earnings. If at all what is? It is the hope that earnings will improve in the future, perhaps FY14 onwards, not immediately. Earnings don’t improve overnight and market was not stupid to believe that joke and went up all the way to 6100.

Our markets went up because valuation wise we were extremely cheap when we were trading at 5200. If even after all the run up, 14 times is what we trading one year forward, then it is not really expensive. A real disappointment would be if FY14 earnings downgrades happen in a large way, then the valuations will look expensive post further run up from hereon and that could lead to a good correction. We’re not really there yet.

I feel that the markets are just trading in a range and this current one is just a correction post that big run up. People who are sitting on good profits are ought to book them and people who want to put fresh money on the table, they’d like to wait for some correction before they jump, that leads to a correction. Now personally I see 5800-5850 acting as a good support in this correction. On a slightly longer term basis, I see 5600-5700 holding up well on the downside and on the upside, I’m confident of new all time highs being created in 2013. By that I mean, 6300 will be beaten!

I think one should use this dip as an opportunity to buy for long term as this market is going to reward you handsomely in long term. Imagine Nifty at 8500, 3 years from now and good individual stocks that are growing at 30% would almost double itself from current levels. Buy as the market falls and use this opportunity to build your long term portfolio if you are still sitting on cash.

Don’t worry about nifty going to the lows and with it taking down a lot of stocks, if you’re in it for long term, you’re going to make a lot of money and part of the dip is already here in front of you asking you to use it as an opportunity. Imagine someone who had bought Yes Bank at 370 and people who were worried that if a fall comes and Yes Bank would crash and they waited for 280-300 levels which they never got and missed out the rally upto 540. Now who buys at 500 today will sell it at 1000 3 years down the road and people who are waiting for 400 levels would just keep waiting forever.

Valuations are not expensive today as we’re far from being in a peak as we saw in 2010 end or a super peak of 2007 end. We are in a fair value zone or a little below that and thus buying today gives you a valuation comfort, so you won’t see much value depreciation as you may have seen in the past, had you bought around the similar nifty levels and faced a correction. Stick your neck out and go buy into the equities now!

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We’re in a similar situation now as we were 2-3 months back. We are consolidating around these levels of 5850-5950 now like we were around 5600-5700 back then. I maintain a similar view even today and suggest people to use any kind of dip to accumulate good stocks and hold for a few months. There is also a possibility that we may see some kind of correction and if that happens, count it as a blessing and purchase as much as you can because we’re going higher in time to come. The unwillingness of the markets to fall simply suggests that there is a lot of buying interest being seen and market bulls are jumping in on all kinds of dips. I’ll probably be surprised if nifty gives a closing below 5800 anytime soon.

If you ask where to put the money, I’ll still suggest to buy private sector banks on dips as I did in October. Most people would argue that private sector banks have already run up a lot and so there is not much upside left. The same people said the same thing back in October when these banks like Yes Bank, IndusInd Bank etc were sitting at all time high levels. Yet we are here, 2 months later and there has been another 15-20% upmove since then. If these stocks have gone up a lot, then these stocks should also correct? And that is all you need, a correction or a dip to buy, so buy them even today and keep accumulating as they keep falling. A short while back, we saw some 5% or more correction in Yes Bank, as well as IndusInd Bank and in a matter of days they recovered and are ready to go up further. So that clearly tells you the amount of interest in these stocks and fundamentally they are very sound. Axis Bank, ICICI Bank, ING Vysya are all good stocks you can buy as they fall. On  a side note, I do like Tata Motors, apart from the private banking space.

Just don’t ever put all your money at once at the highest possible levels and watch a correction only to panic and exit in loss. Buy slowly and try to accumulate more as the stock falls. It is not an issue if you are not able to put all your money into the markets due to lack of correction, but atleast you are going to be satisfied with positive returns. Let’s hope we don’t see any mess up from the global front or from the government and we’re on our way to higher levels in markets.

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Then we had some nice news coming out of Europe and there was a strong case of QE3 also developing after a bad jobs data from US. I immediately picked up 2 more lots at 340. This got us an average of 4000 shares at 337.50. The first surprise moment was the Thursday night when US Fed announed QE3 and global markets shot up. Next day when we opened up, Yes Bank shot up sharply to 356. Then there was a second surprise from our government when they announced series of reforms on Friday evening. Monday was another great day, specially for banks, and Yes Bank shot up again. I used that opportunity to exit and book my profits at an average price of 368.50. Although the stock ended at 377, thankfully it did not keep going up. Going by my buy on dips strategy, on the next two days, I picked up a lot at 374 and another at 363 that were quickly sold off at 376 before expiry.

In short, yes I made a few mistakes which is by not picking the stock at 325 and ending up buying at 340. Another mistake was selling in a hurry at 368.50 when there was no hurry to do so as the overall trend of the market was still up. But then, I think the overall month was still great as I was able to pocket a small gain again before the expiry.

Now, coming back to the calculations, during the month of September, we earned (31X4000+2000X7.50)=139,000. The current status of the fund is 595,000, up 195,000 since July. This amounts to a total of 49% gains in 3 months, bringing us to an average of 16.33% per month.

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What should I do in this market correction?

My personal opinion is that, every long term or medium term investor should patiently hold onto their investments or trades for another month. If you are selling now after this correction, you’re making a big mistake. This correction in the markets is nothing but a buying opportunity. The markets did not go up and FIIs did not pump in the money for nothing. The sentiments towards India has improved significantly and that is why money is being pumped in. There is a lot of money waiting on the sidelines to enter the markets, someone will exit and someone else will enter. Most people are patiently waiting for a good correction to start buying again.

Just think, why is almost everyone talking about fresh highs for the market in the next 1-2 months? If almost everyone has the same view, don’t you think on any good opportunity, they are going to pump in the money? The current dip in the markets looks like a profit booking move and soon that dip also will be bought into. Unless we get really bad news from somewhere, markets are going to hold up and move higher. I won’t be surprised if nifty crosses 6000 also by Diwali time. If you want to make the most of this upmove, you ought to enter the markets in this current dip, failing to do will make you miss a lot of money making.

I continue to maintain my bullish view on private sector banks and suggest buying them on dips. They are really safe to buy and hold and manage to give great returns. Just look at Yes Bank and IndusInd Bank, how they are at all time highs and have given superb returns to investors this year. Good Luck to you all, and hope you make the most of this mini bull run.

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Now let us look at the news events that lead to sell off in Private Banks in August. It all started with the Coal Scam where people got worried that just like 2G, all the coal blocks will get cancelled and the loans that several companies have taken to start mining will become NPAs. Next was Finance Ministry statement which highlighted banks and their exposures to airline sector. The third one which was something actually worth looking at was Deccan Chronicle’s bankruptcy.  ICICI Bank, Axis Bank, Yes Bank have got exposures to Deccan Chronicle and the banks are trying their best to recover their debts. But was it enough for the kind of underperformance from Banks? I really doubt it. While nifty was stable in the range of 5200 – 5400, private banks came off sharply. Yes Bank tested levels of 330 in August.

I had started the August expiry series with 1000 shares at 355. For several days, the stock was stuck in the range of 355 – 370 and so when the premiums had slashed down, I moved the lot from 320 call to 340 call. I sold it at a profit of 5000 and bought a 340 call at 21 rupees which gave us a holding of 1000 shares at 361. Then suddenly the stock started falling and I picked up another 340 call at 12.50 rupees which gave us another thousand shares at 352.50. Then I bought a third lot in a 320 call at 17.50 rupees which means, I had 1000 shares at 337.50 also. Totally I ended up at 3000 @ 350. Yes Bank ended August expiry at 330 rupees. I lost about (21+12.5+7.5-5)X1000 = 36,000 rupees in the whole month of August.

The losses look big but the most interesting fact is, the stock is around the same levels from where I had purchased the first time in July and made a nice profit. So expecting the same targets in mind, I decided to roll over the shares to September at the same level it expired. Now September is yet to end and we’ll see how the strategy went in September. As far as August is concerned, we’re down by another 36,000 bucks.

The current status of the fund is 456,000, up 56,000 from the initial amount (14% gains) in two months. This gives us an average of 7% a month as of August.

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After Mid-July, I had purchased one 340 call at 22 rupees and as the stock fell below 350, I got another 340 call at 10 rupees and with further fall to 342, I got another one at 4 rupees. This averaged me about 3000 shares at 352. On the day before expiry, Yes Bank gave an absolutely fantastic set of numbers and the stock moved up to 346 on the results day and then to 354 on the day of expiry even when markets were completely flat or even slightly negative. The fund was on it’s way to make some 3000-6000 bucks till the last 30 minutes when suddenly the markets started crashing.

The last 30 minutes were so disappointing and unexpected. My strategy was to roll over the 1000 shares that I had purchased at 362 and book my profits on the other two calls. So I bought one 320 call at 34 rupees, which means 1000 shares at 354 and since only 30 minutes were left for closing, I assumed the stock to end around those levels before suddenly markets started crashing and Yes Bank ended at 346. This sudden fall not just made me lose 4-5 rupees on august call that I carry forwarded, it also ate my profits from July calls.

The correct approach would have been a sell at 346 and 2 lots of carry forward to August at that level which obviously didn’t happen. So there I lost 20,000 there and now I’m simply stuck with just 1000 shares @ 354 now. My original plan was to buy two lots for August if the stock ended anywhere below 350 as any loss trade must be carry forwarded for next month. And the funny thing is, global markets rallied the same day and the next day where I could have bought saw a gap up opening. Anyway mess up happens sometimes, that’s market for you.

The current status of the fund is 492,000, up 92,000 from the original amount in a time frame of one month.

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