Stale Pricing

[partyanimal 0]

If any of you want to make some easy money....................if you are in a mutual fund family with no front end or back end load...........on a kick ass day on Wall Street, before 4PM you move all your money into an American based mutual fund that buys Asian stocks.

 

It's like past posting.......a slam dunk!

[wombat 5]

please take me by the hand and walk me through this one in easy steps and in english i can understand . ???

[partyanimal 0]

1) The idea of this system is to make a small profit, about 1% in one day.  So in order for this to work the mutual fund must have no sales charge to get in, and no defered sales charge if leaving.  

 

2) Asian markets all close before the USA markets open.

 

 

3) If Americans markets do extremely well then about 80% of the time the Asian markets will do well the next day.  Or if American markets go down substantially then about 80% of the time the Asian markets will do poorly the next day.

 

4) So if around 3:30 (New York time) you see the US markets are having a great day (like Thursday), you then move all your money into a fund thatinvests in Asian stocks.  You are buying in based on the price at the close of the Asian markets (although that price has not been released yet).  But you are pretty sure that when the Asian markets open the price will shoot up becuse of this high postive correlation.

 

5) So a buy situation would be a day when the Dow, S&P 500, and Nasdaq were all up at least 1% at 3:30.

 

6) From Yahoo Finance you can download closing percent increases in the Dow,

S&P etc and match them up with the next day prices of Asian funds (orforeign funds but Asia is a purer play) and prove to yourself that the correlation is unmistakeable.

 

There are exceptions. For instance when the Japan market opens in a few hours it will be reacting to Saddam's capture and the influence that capture had in the dollar-yen price.

 

But this works.  If I'm not being clear. please let me know.

[partyanimal 0]

Wombat-Just noticed you're not American.  You have to be buying into American mutual funds that invest in Asian stocks.

[Greg_B 306]

It's a practice called "Market Timing" and is usually done within a 401k

 

If you have a Mutual Fund in your 401k, that is an Intl Equity Fund {such as one from Putnam}, you can "time the market...But it's not as easy as it sounds...Not a "slam dunk" by any means and is a risk..

 

I did this practice about 4 years ago and yes I got "lucky" and made about $25k for my 401k.  I would buy and sell within the fund as it went up and down...But, since that time the Asian Markets have been in a stalemate and have lost a lot of value..

 

It was a thing of pure luck when I did it and I don't expect it to happen anytime soon...But I'm watching...

 

You must be aware of the top holdings of your fund, mine is Vodaphone, which is not Asian based.  It takes patience and isn't as easy as it sounds

[partyanimal 0]

Greg-I do it within my 401K too.  I made 2K in the last month moving a little more than 50K around.

 

Question-Did your fund eventually stop you from rapid trading?

 

I have two foriegn options, one fund from Templeton and one fund from Nicholas Appelgate.

 

Yes, more European than Asian and I think Vodaphone is the top holding in Nicholas Applegate.  If the big market move is in the afternoon much better sincethat will then influence the European stocks.

[Greg_B 306]

I've got only one Intl Fund {Putnam} and they do allow the in/out trading as you describe...Seems Putnam has been is a "rut" as of late {2 years} , rarely going above $20/share...

 

Just made $2500 from a trade withing the T Rowe Price Small Cap, which has been awesome this year.  I'll watch the Intl Funds as they did jump in 1998 or 1999 an amazing 60% return.  But since then it's been all downhill...

[partyanimal 0]

Greg-My thing is not buying in and out as the fund goes up and down.

 

My thing is buying into the foriegn fund before 4PM on a day that the American markets are up 1% or more.

 

It's working for me with real dollars but it's not luck.  I have spreadsheets with two years of data showing the obvious correlation.  If anyone wants to look at them I'll be happy to email them to you.

 

Anyone else trying this just be aware that the Japanese market will be closed on some non-obvious days in the next couple weeks.

 

I know many of you may have a hard time believing that something like this could be so easy.  But at one time you didn't know you could get laid for $15 from a real cutie!

 

I made two grand this month, let's see how many short times on Soi 6 does this get?

[Greg_B 306]

I "think" I understand it partyanimail, it is a hard process to explain...

 

I can go in/out to a Money Market Fund , which is like a savings account..I sell on a good day and put it back into Money Market at a set price and buy back on a bad day...

[partyanimal 0]

Greg-You buy into the foriegn fund before 4PM on a day that the Dow/Nasdaq is doing extremely well.

 

Maybe one day out of ten is a day you want to buy in.

 

You sell the foriegn fund before 4Pm the first day the Dow/Nasdaq is doing poorly.