Trading like an Egyptian.

The Egyptian stock market finally reopened yesterday after a number of false starts with protesters threatening to burn the exchange down, worried that they would experience massive losses when the exchange finally reopened.  The Egyptian market ETF that is available in the US continued trading even though most of its holdings are only available on the Egyptian exchange and had not traded since January 28th.   The ETF was trading at a 17% premium to its underlying stocks when the exchange announced they were opening on 3/23.  This premium quickly evaporated after the announcement and on the first day of trading (today) as you can see the 13% drop in the stock price the last 2 days.

EGPT ETF drops 13% in last 2 days as Egyptian stocks resume trading.

 

I have been short EGPT since February 11th at $18.07 and will likely begin covering this week as the premium on the ETF has evaporated and panic selling may start abating.

 

twitter: @LimitUpTrading
web: http://LimitUpFutures.collective2.com

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