The S&P rallied again overnight as the Dubai World related woes eased across the world. The Dollar index retreated again as players sought riskier assets. Wow this sounded almost like any media commentary. Two minute sound bytes giving easy to understand causal relationships. Who knows whether it is true.

What is true though is that an US Banking sector index (BKX index ) has underperformed severely in the last few weeks. When S&P is up 11%, the BKX is flat. This clearly shows that some other sectors have started leading this rally while in the early stages it was the BKX which was the driver.

Trends in equities and commodities remain up. Dollar remains trended down. There is clearly nothing more to add in this.

I am long the Nifty from 5110 levels yesterday. I had cut my short positions at 5035 day before yesterday.

Will remain long and reassess the situation if the market starts to dip below 5010 today. Only then will I think of getting out of my long positions.

Thats it---no wise cracks today. Got to run for a meeting.