Miracle

The overnight rally in the US has seen the S&P close at its highest for the year. The CRY Index has moved into a short term uptrend. The Dollar Index seems to be picking up momentum on the downside. This should bode well for equity and commodity bulls.

I have been long on the Nifty from 4135 levels. The rally has taken the Nifty above the budget day high...which, according to my way of looking at things, was an important pivot. The Nifty now looks headed towards 4700-4800 where the neckline of the potential reverse head and shoulder that I discussed yesterday could act as a resistance.

There are other insignificant details like IVs of options and volumes etc which I will leave for others to discuss. Else why would you want to read the many other notes that find their way to your desk!!!.

By the way, you remember the "deep and insightful analysis" that I did in yesterday's note?. I was being so deep that I made elemantary mistakes in arithmetic calculations. The pattern implication of the reverse head and shoulder is for a rally to 7200-7400 and not to 6100 as I had mentioned yesterday. The time frame for that rally is one year. Would it not be great if I turned out to be right just this one time?

Despite the rally yesterday, there were disappointments later in the day. I was hoping for a back to the wall kind of victory for the Australian cricket team. It is always inspiring to witness a miraculous victory. Or history being made. But these things do not happen too often I guess else one would not label them as miraculous.

But you know what would be the ultimate miracle?. The world learning to live in harmony and in peace. Everybody learning to live frugally so that the environment we live in is mended. Each man leaving the world a little better than he found it. If that happened that would be the ultimate miracle. And what better miracle to pray for?

P.S Hey this is supposed to be a note on markets. So I want to end with a day trade. If we gap up today and then break below the 5min low one should sell the Nifty with a stop at the 5 min high.