Hang Seng to trade 21000 or 22500 in next 7 days

Investors in Hangseng Index are in a confused state of mind for the last 3 months. Whenever the index trades near 23000, investors holding the view, central banks would not let the inflation turn into hyperinflation exchange the index for cash. On the other hand breakdown towards 21000 attracts the investors sitting on sidelines. The chart shows that approximately within 15 days Hangseng moves from 21000 to 23000 and then a cycle is completed by Hangseng dropping to 21000 in the next 15 days.

Betonmarket offers various products through which we can make money if the above mentioned turns into a reality for 4th consecutive time. We can place a bet that within next 7 days Hangseng will either trade at 21000on the lower side or at 22500 on the higher side, this bet can fetch us 2 USD for every 1.2 USD invested. This bet is a type of Boundary Bet and it is called Breakout Bet.

The other variants of this bet are

One Touch

This means the index should touch a specified target pre decided by you within the expiry period , the larger the difference from current price, the more you stand to gain. If the index doesnt have a shave with your target you lose your initial investment

No Touch

This means the Index should not touch a specified target, obviously decided by you, before the expiry of the bet. If it does you lose money.

Barrier Range

For a successful execution of this bet, the index should trade within the specified targets till the expiry period, if it moves past the specifies range you lose your money.

There are also Expiry bets and Double bets which I would explain later

What drives the Stock Market up GROWTH or INFLATION?

Most of the Fundamental Analysts say that growth drives the prices of the Stocks up, is it right? Most of those Analysts said that a drop in the prices of Crude would help the market rally but when Crude prices were tanking most of the World Markets too were tanking, when the Crude fell to 33$ the Dow Jones Industrial Average was not at its life time high, neither the Asian Market Indices like Sensex (India), HangSeng, Shanghai Composite (China) were trading close to lifetime highs but were languishing close to more than 50% down from there lifetime highs and now that the prices of World Markets have improved, the Crude too has more than doubled in price.

A small query for all my readers, do you know the Stock Markets in the World that gave most returns?

Was it Bovespa which traded at 19K in 2000, 8K in 2003 and traded at 74K in 2008 a whopping return of 900% over 5 years, or was it the Sensex which traded at 6K in 2000, 2.3K in 2003 and went on to trade at 21K in 2008 again a handsome return of 800% in 5 years, And I have not forgot the Shanghai composite which was trading at 1.2K in 2006 and went on to trade above 6K in 2008 a return of 500% in just 2 years. But dear readers it seems you have forgot Zimbabwe where the unemployment rate is close to 80%, yes dear readers you have forgot Zimbabwe

According to

http://www.zimbabwemetro.com/finance/stock-exchange/zimbabwe-stock-exchange-market-capitalisation-reaches-us203-billion/

Zimbabwean Stock Market gained 300000%,

http://www.thezimbabwetimes.com/?p=12045

Says that Most shares gained 50,000% in one day

http://www.dailyreckoning.com.au/zimbabwe-stock-market-booms/2007/06/04/

Attributes a smaller return of 12,000% over a year to the Zimbabwean Stock Markets

So friends how come a Country whose employment rate is just 20% gives such handsome returns on investments in Stock Markets, It just due to the fact that the inflation there is running hot as you all know and that the biggest note there is 1 Billion (approx) and it can purchase a loaf of bread for you.

In my next post I will elaborate how Zimbabwe is not an exception but an example of the Contrarian Theory that the Inflation drives the Stock Markets and in a post after that why the US $ would not be sinking but gaining, Till then Take Care and try to beat the INFLATION.