For the last one week at least the trend in equities and commodities is down. S&P, European markets are trending down. CRY Index is also pretty weak. If one looks at individual commodities then Crude Oil and Natural gas are worse hit than metals like Copper and Nickel. Silver has underperformed gold. Am not sure when the trend will change. Am also not certain that a couple of days of rally will mean that the downtrend is over.
For the last two days I have been saying that I will cut my short positions if Nifty crosses 4135. On Friday I came to within 6 points of being stopped out. Luckily for me the Nifty did not hit those levels and then moved drastically lower to end below 4000. This increases the importance of the 4135 level. At least in my eyes. Hence I will continue to remain short but a rally above 4135 will mean I will cut my short positions and go long a bit. I hope the Nifty does not disappoint me this week.
Talking about letdowns, I came back from HK on Thursday with what I then thought was a prized possession- The DVD of Transformers-not the new film-the first one. With great expectations I sat to watch it over the weekend and ended up being greatly disappointed. I could not connect with the story at all. I know, I can hear you tell me that Transformers is not about a story and all about action and Megan Fox. But I have seen much better action-- in Terminator 2 for eg and Denise Richards in Wild Things was far superior to Megan Fox. (If this does not elicit a response from you then nothing else will)
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