Let’s look at the FKLI futures prices recently. 2 June 2008 closed at 1267.0 and the overall prices of the futures are declining over the month. At the end of the month, the price has dropped to 1186.5. This may be the lower point of the month and it should be taken advantage of.
To ascertain the downward movement of the market, we decided to wait for a few days in order to buy in at the lowest price possible. The following shows the market prices a few days before the real purchase is made:
| Date | Open Int. | Open | High | Low | Closed |
| 01-Jul 02-Jul 03-Jul 04-Jul 07-Jul | 33,945 35,738 36,978 36,539 36,438 | 1,172.0 1,152.0 1,126.5 1,119.5 1,113.0 | 1,175.5 1,159.0 1,132.0 1,121.0 1,121.5 | 1,152.0 1,137.5 1,110.0 1,104.5 1,106.5 | 1,152.0 1,144.0 1,117.0 1,110.0 1,119.0 |
By referring to the table, the prices dropped from 1152.0 on 1 July 2008 to 1110.0 on 4 July 2008. This has proved that our prediction about the market is correct. However, the futures prices closed 9 point higher from 1110.0 on 7 July 2008. Thus we decided to take the opportunity by purchasing the July futures contracts on 8 July 2008 in order to avoid further advances of the price in the market.
0 on: "Speculation Opportunity"