Eoin Treacy's view With weakness spreading through global stock markets and the increasing potential for a mean reversion correction unfolding in some of the most overextended indices, I concluded it would be opportune to have a short in one of the more overbought stock markets Thailand is one of the more accessible markets in the ASEAN region and remains quite overextended relative to its MA.

I had initially attempted to short the US listed ETF but this option was unavailable due to restrictions on naked shorts, so I opted for the Aberdeen fund instead. I shorted the June Aberdeen New Thai Investment Trust contract at 269.33p including spread-bet dealing costs of 8p. The risk to this trade is that the Index has a shallow reaction which allows the MA to catch up and that the continued discount to NAV of 14% cushions any decline. The longer-term outlook remains bullish and I am looking for nothing more than a reversion towards the 200-day MA.

Canadian 10yr government prices have fallen quite sharply over the last week. I closed my short this morning at 123.71 against my sale on November 2nd at 125.82 in the hope that I will be able to reopen the position at a higher level in the not too distant future.