Imitation is the Best Form of Flattery

I have written about the Dollar Index much too often in the recent past. Suffice to say that if DXY crosses above 75.75 today then I see it heading to at least 77.5. Not much I agree. But that was a strong support in the past and a recent rally did take the Dollar to 77.5 before the current fall below 75 and I imagine that the 77.5 level will be a decent resistance to any rally. What happens if that level is breached is best left for the time when the DXY actually does that.

Among world markets, the major trend is still up. There is no call to short any of the markets....yet. However on a very short term basis I went short on the Nifty at 4980 yesterday and will short more if we breach 4920. Since this was a very short term trade and in a sense against the overall uptrend, I will cut my positions today if the Dollar refuses to move above 75.75 and moves lower. I really believe that an inability of the Dollar to move above 75.75 today will trigger the Dollar downtrend again and will lead the Dollar down. In Nifty terms I will look at a move above 5025 as very bad for my short position.

Finally we live in a world that loves its heroes. Who wouldn't want to be one. I have always grown up wanting to emulate my heroes- be a cricketer like Sunil Gavaskar. Today I realised that this is true of not just ordinary people like me. Even heroes like to emulate their heroes. I am also now very very certain that Thiery Henry must have really admired Diego Maradona. The natural phenomenon of osmosis has enabled him to imbibe all of Maradona's charachteristics. Yesterday he emulated his hero by doing the one thing Maradona is best known for---- The Hand of God Goal. In this case we can say Imitation is the Best Form of Hero Worship.

P.S Want to reiterate that I am short the Nifty and will short more below 4920. I will cut short positions above 5025 and go long.