We have had feedback from numerous elated subscribers that piled into TOPCAK warrants on the 8th July after we issued our special alert on the exceptionally rare 7-to-1 declines-to-advances ratio that occured on the 7th. We predicited that this flushed the last of the sellers from the market and the market would rebound sharply. Within 10 days the market had shot up 10% and the TOPCAK speculators had doubled their money.

We are delighted for our members, even more so that profit was made from our cutting edge research into the Advance/Declines ratio (see Profiting from Advance/Decline ratios), but we wish to put on record that the purpose of our site is medium to long term investing and NOT SPECULATION. What the interest in the Rebound strategy and this event has showed us however is that our subscribers have rather more of a risk appetite than we expected and we just want to make clear that the bulk of our research is geared to long term returns maximisation (or INVESTMENT) as opposed to short term gains and speculation.

TOPCAK (Calls for going long) and TOPSKP (Puts for shorting) are excellent and easily deployed geared instrument to speculate on moves on the JSE TOP40. With the TOP40 up 10% last week this garnered 100% (10:1 gearing) returns. But you can lose money just as quickly! Our Advances/Declines research and indicators we publish on The Weekly JSE Pulse (WJP) are geared toward finding bottoms for our investors to buy on weakness for portfolio conctruction and yes, it can be used to trade warrants but as long as you realise this is called SPECULATION and not investing!

We hope our fortunate TOPCAK subscribers put their gains to work on some good long term strategies, and if you like to "play" the market ups and downs with TOPCAK then make sure you create a seperate account for this and carve off no more than 5-10% of your investment capital for this type of speculation. With Standard Banks' Online Share trading you can have a special warrants account with discounted rates (only R50 per trade) and this is what we ourselves use for the odd speculation here and there (we only trade TOPCAK on Advance/Decline special events)