I wrote this on Friday but did not publish it. "The illusion of safety in the global markets were ripped to shreds yesterday after Dubai World's call for a standstill agreement with its lenders. Naturally no lender loves to hear these words.

This can result in a reduction in the risk trades that were put on as well as act as a catalyst for the Dollar rally that everybody is worried about.

Equities and commodities fell yesterday while the Dollar rallied. As far as trends are concerned, the world markets have not yet given a sell. It is likely that a sell will emerge if there is a further fall today.

I had mentioned yesterday that I will get out of my long positions if Nifty breaks below 5050. I also said I will short the market if it feels right. It did feel right and I am now 50% short on my portfolio. This short position is purely on my feel and not based on any system that I trade.

I could add to my short positions if we break below 4870 today. This is based on my trading system.

When the world markets react to an event and panic it is time for rational investors to step in and buy---Old Jungle Saying (As they used to put it in the old Phantom comics of the past). Or is this quote part of Warren Buffet's statements or Mark Mobius'? Or is it just some collective wisdom that has been handed down over the decades? I do not know. However I will be irrational and NOT BUY until I find some investors who are rational and start bidding the market up. We will see in the next few days whether being irrational has its advantages!!!"