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As the banks’ reporting season kicks off this week the main equity indexes are showing initial signs of strength, with investors speculating that the banks’ dividend payouts will avoid hefty cuts, and might even be raised. However, an unexpected announcement (Tuesday 19 February) by Credit Suisse (CSX:XETRA) that profits would come in $1 billion lower suggests that uncertainty and volatility could still be the main theme this year. Indeed, some of our plays were stopped out in the past week, notably our long on engine maker Rolls Royce (RR.), which was hammered by investors asserting that the dividend increase was, in fact, not large enough.

Our short play in BSkyB (BSY) was also stopped out of the portfolio after a couple of rallies on the FSTE 100.

Still, we have managed to chalk up some tasty profits. Our short position in house builder Persimmon (PSN), which we tipped on 7 February due to a promising technical outlook, quickly hit the target as the price drifted to 708p, pouring a 10.61% profit into our coffers.

Our long position in oil giant BP (BP.) is also rewarding, as the price reached 568.5p, giving us a 8.8% return.

Our Dollar/South African Rand currency play is still up 5.57% as the prospects for the South African power crisis haven’t improved.

A mix of commodity and equity plays this week should provide you with a good hedge against fast and sharp market movements.